Hi folks,
You simply can't get away with PSI without serious implications from the ATO. You must earn at least 20% of your income from an independent source - ie no more than 80% from one company (or related company). You can NOT pay your spouse to do "secondary" tasks relating to your business to avoid PSI. Secondary tasks include accounting, marketing, etc. Primary activities would be like programming, installations, etc. So, "doing the books" does not count no matter if you have timesheets or not. The two biggest ways to avoid PSI is by having legitimate employees or by taking on projects that get you paid on completion not by the hour. You may have a single company as a client provided you don't charge by the hour and you must have a contract that clearly stipulates the deliverables required to get paid. Folks, the ATO has this sewn up and they are TARGETING IT professionals. Sorry for the bad news. Cheers. James. From: ozdotnet-boun...@ozdotnet.com [mailto:ozdotnet-boun...@ozdotnet.com] On Behalf Of Stephen Price Sent: Friday, 30 April 2010 00:17 To: ozDotNet Subject: Re: Contracting to a single company My wife is doing my books. You should hear her complain about it. And I have to really pay her to do it. The ATO understand. On Thu, Apr 29, 2010 at 3:12 PM, David Burstin <david.burs...@gmail.com> wrote: On Thu, Apr 29, 2010 at 5:03 PM, Trevor Andrew <tand...@tassoc.com.au> wrote: What they don't want to see is your company earns X, and you pay a salary of X/2 to you and X/2 to your wife for "doing the books". Unless your wife really is doing the books, has timesheets to prove it, and is just paid for her actual time at a commercial rate. Cheers Dave Cheers, Trevor From: ozdotnet-boun...@ozdotnet.com [mailto:ozdotnet-boun...@ozdotnet.com] On Behalf Of Michael Ridland Sent: Thursday, 29 April 2010 4:37 PM To: ozDotNet Subject: Contracting to a single company Hi I've heard from some people that there is tax implications of contracting to a single company for more than 75 percent of your income, is there any truth to this? Thanks,
