7. Individuals

Question 1

What are the rates of tax for individuals?

Answer 1

Resident - Marginal rates AFTER tax-free threshold
Non-resident - marginal rates NO tax-free threshold
Medicare and other levies

Question 2

What are non-commercial losses under Individual?

Answer 2

Business loss made by an individual taxpayer (alone or in a partnership)
There are several tests and if it does not pass, the loss must be deferred to the next year for business income (not refunded)

Question 3

What is PSI?

Answer 3

Personal Sevices Income - mainly a reward for personal efforts and skills

Question 4

What are the three types of Personal Services structures?

Answer 4

PSI - individual (limited deductions, like an employee)
PSE - Personal services entity (Same as PSI but also some extra deductions)
PSB - Personal Services Business

Question 5

What are the tests to determine a PSB?

Answer 5

Results test
OR < 80% PSI from one source
AND unrelated clients
Employment
Business premises