Personal Services Income: Applying Part IVA to Personal Services Entities

Will the ATO apply the general anti-avoidance provisions (Part IVA) to a Personal Services Entity (PSE) that isn’t subject to the PSI rules because it passes the Personal Services Business (PSB) test? Evaluate your client’s risk level with a checklist of issues to consider.

In this session, we cover:

• Purpose and scope of PCG 2024/D2

  • When do the PSI rules apply?

  • Scope of application

  • Exemptions

• Preliminary issues for tax advisers

  • Is the income actually PSI?

  • Determine likely Part IVA risk

  • Asset protection argument?

• Low- and high-risk features

• Selected examples from PCG 2024/D2

• Case study: Murphy Discretionary Trust

  • Application of Part IVA

  • Applying risk factors

• Key take-outs from the Guideline

Date recorded: 6 June 2025