Professional Services

Tax & advisory for Sydney professional services firms

A partnership that bills $2M a year and distributes it equally to three partners is leaving money on the table. Structure, super, and tax planning turn a good income into a great financial position.

Where most businesses leave money on the table

These are the strategic gaps we close — the ones that cost real money when they are ignored.

Partnership vs company vs service trust

Each structure has different liability, tax, and succession characteristics. For professional services, there are additional regulatory restrictions (PSI rules, professional standards legislation). We navigate all of it.

Personal services income (PSI) rules

If more than 80% of your income comes from one client, the ATO may apply PSI rules that limit your deductions and prevent income splitting. We test and structure to stay on the right side.

Succession and partner buy-in/buy-out

Professional firms are built on relationships. Valuing and transferring that goodwill — to a new partner or an outgoing one — requires a methodology that both parties trust.

What we deliver

Every deliverable is principal-signed. Not delegated, not templated — built for your situation.

  • Partnership and entity structuring
  • PSI compliance review and planning
  • Tax return with professional-services-specific deductions
  • Partner buy-in/buy-out valuation and structuring
  • Super strategy for partners and principals
  • Firm performance benchmarking and growth advisory

The result

Your structure is optimised for tax and liability. PSI rules are managed. Partner transitions are valued and documented. And your firm runs on data, not intuition.

They restructured our partnership into a service trust model. The tax outcome was better, the asset protection was better, and the succession path was finally clear.

Consulting firm principal, North Sydney

Common questions from professional servicess

What are the personal services income (PSI) rules?

PSI rules apply when more than 80% of your income from a contract is for your personal skills or efforts and you fail at least one of four ATO tests (results test, unrelated clients test, employment test, business premises test). If PSI rules apply, certain deductions are denied and income cannot be split through a trust or company. We assess your situation and structure accordingly.

How do I value a professional services firm?

Professional firm valuations typically use a multiple of recurring fees or a capitalised future maintainable earnings approach. Key variables include client retention, referral dependency, partner-specific goodwill, and work-in-progress. We build valuations that both buyer and seller can rely on.

Should I take a salary or a distribution as a partner?

It depends on your marginal tax rate, super requirements, and the partnership agreement. A combination of salary (which attracts super) and distribution (which may be more tax-efficient) is often optimal. We model the scenarios with your actual numbers.

Need bookkeeping handled too?

Done-for-you bookkeeping so the numbers are clean before the strategy starts.

Ready to talk?

15 minutes. No obligation. We assess whether our specialisations match your situation. If they don't, we'll tell you straight.