Professional contractors ask us if there are any benefits in setting up a Company or Family Trust and bill the agency or client for their contracting revenue. The answer to the above lies in understanding the Personal Services Income legislation (PSI). This question is not about status as ‘Contractor’. Even though you may meet all the criteria of Contractor and fit the definition of Contracting, this is about how the ATO treats the payments made for tax purposes – as business income or personal income. You need to earn Business income to reap any benefits from
Read more →
