If you do not need plant, equipment or tools to perform the work, then this condition will be met. You will not fail this condition if you have minor use of tools or equipment provided by your client. This includes plant, equipment or tools that your client would ordinarily expect you to provide, or where you have a contractual obligation to provide it. To meet this condition you must supply any plant, equipment or tools needed to complete the work which produces the result. is paid for time worked rather than the results produced.Įnd of example Required to provide equipment or tools (where applicable).isn't paid on the condition that the job is completed.isn't contracted to complete a specific job.The contract does not meet the first condition of the results test because JoCo: Under the terms of the contract, Joseph must work 40 hours per week for the authority and will be paid based on an hourly rate.Īt the end of each fortnight, JoCo issues an invoice to the local authority for hours worked by Joseph and receives payment. Joseph provides services to a local authority through his company JoCo, which has entered into a contract with the local authority. This is because payments on an hourly or daily basis are not generally linked to producing a specific result or outcome. If you're paid on an hourly basis or daily rate for the services you provide, it's unlikely that you will meet the first condition of the results test. regardless of whether you achieve a specific outcome or reach agreed objectives.based on an hourly or daily rate for the work you perform.Generally, you are not paid to produce a specific result if you are paid:

being paid an amount for an agreed number of completed items or activities – for example, a furniture upholstering business that is contracted to a furniture factory and paid a specified amount to complete 100 lounge suites.payment is made after contractual conditions have been fulfilled – for example, only on completion of each job or specific objectives (this can include receiving progress payments and deposits).Generally, you are paid to produce a specific result when: To meet this condition, you must produce a specific result or outcome before being entitled to be paid.

It is possible to have different outcomes for different individuals. If you're a company, partnership or trust and you have more than one individual generating PSI, you will need to work out whether the results test is passed for each individual. You may find that some of your business contracts meet the 3 conditions of the test and some don't.

You are required to fix mistakes at your own cost.

You are required to provide equipment or tools (if required).

You must be paid to produce a specific result.

To pass the results test, you need to meet all 3 of the following conditions for at least 75% of your PSI you earnt: The PSI rules don't apply to the income you earn from this PSB. If you pass the results test, your business is a PSB for that income year. The results test is one of 4 personal services business (PSB) tests that taxpayers earning personal services income (PSI) can use to self-assess as a PSB.

Required to provide equipment or tools (where applicable).

If you are earning PSI, you can use the results test to self-assess as a personal services business (PSB).

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