IR35 Rules for Australian Contractors

Understanding the Personal Services Income (PSI) rules is crucial for Australian contractors…

What are PSI Rules?

The Personal Services Income rules determine whether your contracting income should be treated as employment income for tax purposes.

Key Tests

1. Results Test - Are you paid for achieving a specific result?
2. Control Test - Do you control how the work is done?
3. Tools and Equipment Test - Do you provide your own tools?
4. Risk Test - Do you bear commercial risk?

Getting it Right

Make sure your contracts clearly establish genuine contractor relationships to avoid PSI issues.