What is Attributed Personal Service Income?

Personal services income is income that is mainly a reward for your personal efforts or skills.

Generally, attributed personal services income is paid either to you or to a personal services entity such as a company, partnership or trust.

 

Here are some personal services income examples:

  • income of a professional practitioner in a sole practice
  • Payable income from a contract which for the labour or services of a person
  • Income derived by a professional sportsperson or entertainer from the exercise of professional skills
  • Income derived by consultants from the exercise of personal expertise.

 

Personal services income does not include income that is mainly:
  • for supplying or selling goods, for example, from retailing, wholesaling or manufacturing
  • generated by an income-producing asset, for example, from operating a bulldozer
  • for granting a right to use property, for example, the copyright to a computer program
  • generated by a business structure, for example, a large accounting firm.

You can find an explanation of the rules relating to the attributed personal service income in Taxation Ruling TR 2003/6: Attribution of personal services income.

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