Personal services income (PSI) is income from your skills or efforts as an individual. You earn PSI when more than 50 per cent of the income you receive from a contract is for your skills, knowledge or efforts. You can receive PSI in almost any industry, trade or profession. However, common examples include financial professionals, IT consultants, engineers, construction workers and medical practitioners.
You don’t earn PSI if:
- less than 50 per cent of your income from a contract is for your skills, knowledge or efforts
- you receive income from selling or supplying finished goods, even if you made these goods
- you receive income from an income-producing asset, such as renting a vehicle or piece of machinery
- your income comes from licensing your intellectual property, such as a patent.