Psi Classification

If income IS PSI, the entity may still be a PSB if it passes ANY ONE of these tests:

1. Results Test (s 87-18) — ALL THREE required

• Paid to produce a result (not just for time)
• Required to provide own tools/equipment
• Liable for defective work (rectify at own cost)

2. Unrelated Clients Test (s 87-20)

• PSI from 2+ unrelated entities
• Services offered to the public

3. Employment Test (s 87-25)

• Entity employs or engages others to do 20%+ of the principal work

4. Business Premises Test (s 87-30)

• Maintains business premises that are separate from client's premises AND home
• Premises at which the entity mainly conducts personal services activities

Impact of PSI Rules (if not PSB)

Engine Reference

• Engine: lib/analysis/psi-engine.ts
• Function: analyzePSI(tenantId, financialYear, options)
• Output: PSI determination, PSB test results, deduction restrictions, confidence score
• Database: psi_analysis_results table

Legislation

• ITAA 1997, Division 84 — What is PSI
• ITAA 1997, Division 85 — PSI entities
• ITAA 1997, Division 86 — Deduction restrictions
• ITAA 1997, Division 87 — PSB tests