Personal Services Income: where to from here?

Delany, Tom (2012) Personal Services Income: where to from here? Revenue Law Journal, 21 (1). pp. 1-24. ISSN 1034-7747


In Australia, the regime for the taxation of Personal Services Income (PSI) has suffered from being complex, unclear and uncertain, leading to poor compliance with the rules. Personal services income is defined as a reward for, or the result of, one’s personal efforts. Prior to the introduction of the regime, the tax system was plagued with a major inequity: it was possible for individuals to reduce their tax liability by alienating their PSI to an associated company (or other legal entity) and by claiming inappropriate 'business' deductions. This article reviews the current interpretation of the PSI rules, evaluates the Board of Taxation and the Henry Review findings and suggests an approach that reduces the potential application of Part IVA.

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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty/School / Institute/Centre: Historic - Faculty of Business and Law - School of Law
Date Deposited: 09 Sep 2012 08:35
Last Modified: 21 Jul 2014 04:44
Uncontrolled Keywords: personal services income, Henry Review, Part IVA
Fields of Research : 18 Law and Legal Studies > 1801 Law > 180125 Taxation Law
Socio-Economic Objective: B Economic Development > 91 Economic Framework > 9102 Microeconomics > 910207 Microeconomic Effects of Taxation
B Economic Development > 90 Commercial Services and Tourism > 9099 Other Commercial Services and Tourism > 909999 Commercial Services and Tourism not elsewhere classified

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