psi-classification

Installation
SKILL.md

PSI Classification Skill

Determines whether income received by a personal services entity (PSE) is personal services income (PSI) under Division 84 ITAA 1997, and whether the entity qualifies as a personal services business (PSB) under Division 87.

When to Use

  • Assessing whether contractor/consultant income is PSI
  • Evaluating PSB status to determine deduction availability
  • Checking if 80% rule applies (s 87-15)
  • Running the four PSB tests for borderline cases
  • Determining deduction restrictions under Division 86

PSI Determination (s 84-5)

Income is PSI if it is mainly a reward for the personal efforts or skills of an individual. Key indicators:

  • Would the income still be earned if the individual was not involved?
  • Is the income from a contract that is mainly for the individual's labour?
  • Is equipment or tools a significant part of the arrangement?
Related skills
Installs
6
Repository
cleanexpo/ato
GitHub Stars
5
First Seen
Feb 14, 2026