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ATO and income splitting – this time its personal

12/12/2025

The Australian Taxation Office (ATO) has issued Practical Compliance Guideline PCG 2025/5, a reminder that taxpayers are at risk of audit if personal services income is split to reduce tax.  The ATO has indicated that even if your business satisfies the statutory Personal Services Income (PSI) rules and operates as a Personal Services Business (PSB), your overall tax position may still be classified as either […]

ATO draft Practical Compliance Guideline PCG 2024/D2: Impact on personal services income

26/09/2024

The ATO has released a draft Practical Compliance Guideline, PCG 2024/D2 (PCG) which outlines how general anti-avoidance rules apply to personal services income (PSI) earned through a personal services entity (PSE) operating as a personal services business (PSB). The PSI rules were enacted to ensure that income derived by a PSE would be taxed to […]