Allocation of Profits for Professional Services Firms

Learn how to allocate profits in professional services firms effectively while staying compliant with ATO expectations.

In this session, we cover:

• The Income Splitting Landscape

  • Peate v FCT [1964] HCA 8

  • Tupicoff v FCT [1984] FCA 382

  • Three Doctor Cases’ – Gulland, Watson and Pincus v Federal Commissioner of Taxation [1985] HCA 83

  • Case W58 (1989) 89 ATC 524

  • FCT v Mochkin [2003] FCAFC 15

• PSI and Part IVA

  • Personal Services Income (PSI)

  • Personal Services Entity (PSE)

  • Personal Services Business (PSB)

    • Results Test

    • Unrelated Clients Test​

    • Employment Test​

    • Business Premises Test​

  • PCG 2021/4

  • PCG 2024/D2

• Low and high risk scenarios

• Key takeaways

Date recorded: 25 August 2025