What does 'attributed' PSI actually mean?

It means the personal services income earned through your company, trust or partnership is treated, for tax purposes, as if you earned it directly as an individual — taxed at your personal marginal rates instead of being retained and taxed at the company rate.

What deductions can I still claim if my PSI is attributed?

Only the deductions an employee performing the same work could have claimed — for example minor tools, insurance or professional memberships. You can't claim occupancy costs like rent or mortgage interest, payments to an associate for non-principal work, or super contributions made for associates.

Is PSI attribution a flat percentage allowance, like some other countries use?

No — unlike simplified notional-expense schemes elsewhere, Australia's PSI attribution is a real, itemised employee-equivalent deductions test, not a flat percentage. Any single percentage figure shown in a calculator is only a rough illustrative stand-in for minor deductions — real outcomes vary a lot by occupation.

Do I still pay company tax if my PSI is attributed to me?

The income itself bypasses the company tax outcome because it's taxed in your hands instead — so the 25%/30% company rate becomes largely irrelevant to that attributed amount, even though the entity may still exist and lodge returns.

Attributed PSI Calculator

See what happens when PSI is attributed to you personally: entity income, limited deductions and the resulting individual tax at marginal rates.

Annual gross fee income

5.0% notional expenses allowance applied before tax

This models Australia's ATTRIBUTED PSI mechanism, which is genuinely NOT a partial-allowance system like the UK's Ch.8/off-payroll 5% notional-expenses deduction it is paired with here for schema reasons. Under the real PSI rules: if none of the 4 self-assessment tests (results test; or, failing that, the 80%-rule plus at least one of the unrelated-clients / employment / business-premises tests) are satisfied, PSI does NOT get a flat percentage carve-out — instead the entity's PSI income, LESS ONLY the specific deductions an employee performing the same work could have claimed (this excludes rent/mortgage interest/other occupancy costs, payments to an associate for non-principal work, and super contributions for associates — see ATO TR 2003/6 and TR 2003/10), is attributed IN FULL to the individual and taxed at their marginal rates, with PAYG-W obligations following. It is an all-or-nothing attribution test, not a sliding allowance. expensesAllowancePct=0.05 is a rough, illustrative stand-in for the modest 'employee-equivalent' deductions (e.g. minor tools, insurance, professional memberships) still allowed post-attribution — real cases vary enormously by occupation and should not be read as precise. FLAG FOR PHASE 6: calculator id 6 ('Attributed PSI Calculator') deserves its own line-item deduction UI (entity income; allowed vs denied deduction categories; resulting attributed amount) rather than reusing this single-percentage deemedPayment mechanism, which materially understates the real complexity. Source: ATO 'How to attribute PSI' — https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/personal-services-income/what-to-do-when-the-psi-rules-apply/how-to-attribute-psi

Estimated net annual income

$48,240

Gross income$57,000

Income tax$7,620

Medicare Levy$1,140

Superannuation Guarantee (employer)$6,840

Total deductions$8,760

Effective tax rate15.4%

How PSI attribution works, step by step

Attributed PSI is genuinely different from a simple notional-expense allowance. If none of the four self-assessment tests are met, the entity's personal services income — less only the specific deductions an employee doing the same work could have claimed — is attributed in full to the individual and taxed at their marginal rates, with PAYG withholding obligations following. It's an all-or-nothing attribution, not a sliding-scale allowance.

Deductions that survive attribution are deliberately narrow: things like minor tools, insurance and professional memberships an employee could also claim. Occupancy costs (rent, mortgage interest and similar), payments to an associate for work that isn't the principal work being performed, and super contributions for associates are specifically excluded.

How to use this calculator

Enter your personal services entity's income for the year
Enter the employee-equivalent deductions you can still claim after attribution
See the resulting amount attributed to you personally and the individual tax on it
Compare this against what would happen if you qualified as a Personal Services Business instead