ARTICLE · 11 JUNE 2009

ATO Data Matching On Personal Services Income

Norton Rose Fulbright Australia

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Do you operate through a company or other entity that derives income mainly from your personal efforts and skill? Do you obtain work through a labour hire firm or other job placement agency?

AustraliaTax

David Stavropoulos

Anna Wilson

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Do you operate through a company or other entity that derives income mainly from your personal efforts and skill? Do you obtain work through a labour hire firm or other job placement agency? The Australian Taxation Office (ATO) has announced a data-matching exercise to target personal services income being paid to a company or other interposed entity by labour hire firms, placement agencies and computer consultancies. Individuals in this situation should be aware of the personal services income rules.

What Is Personal Services Income?

Personal services income is income generated mainly as a reward for the personal efforts or skills of an individual. Examples include income derived by a computer technician for fixing a computer, or by a doctor for treating a patient.

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