Tax Planning & ATO PSI Rules
Rake Documentation Article
Want to see how this works in practice? Try it directly inside the Rake app.
Launch Tax Planning & ATO PSI Rules Dashboard📋 Overview
The Tax Planning panel evaluates your real-time tax positions, projects potential end-of-year liabilities, and tracks your compliance posture regarding specific Australian regulatory frameworks including the ATO Personal Services Income (PSI) & Personal Services Business (PSB) self-assessment tests.
⚖️ ATO PSI vs PSB Compliance Tests
The Rake Tax Planning module guides you through the 5 statutory ATO legal tests:
- Results Test: Paid for a specific result, provide tools/equipment, and liable for rectifying defects at your own expense.
- 80% Rule: Checks if 80% or more of your total annual PSI comes from a single client or agency.
- Unrelated Clients Test: Requires obtaining work from 2 or more unrelated entities via public advertising or proposals.
- Employment Test: Evaluates if you engage employees or subcontractors to perform at least 20% of principal work.
- Business Premises Test: Assesses dedicated commercial office premises separate from private residence.
⚙️ Run a Tax Projection
- Open the Tax Planning view
- Select your target Financial Year scope
- The module pulls actual data from finalized invoices and projections from forecasts
- Amounts are run through current ATO marginal tax brackets automatically
- Expand the ATO PSI Self-Assessment Checklist to step through statutory tests
📑 Field Definitions
| Field | Type | Details |
|---|---|---|
| Actual & Projected Income | Currency | Net revenue minus deductions, combined with forecast values |
| Estimated Tax Payable | Currency | Projected liability using current FY individual marginal tax tables |
| Medicare Levy | Currency | Auto-calculated at 2% of projected taxable income |
| PSI vs PSB Status | Enum | Compliance determination: Personal Services Income or Personal Services Business |
🔗 System Interrelationships
This view relies on data from across the app. It reads actuals from Invoicing & Billing, forward-looking data from Planner & Forecast, and business structure profiles from Business Entity Setup. The resulting PSB status determination directly changes how the PSI Extraction Scenarios module models your tax optimization structures.