Taxable professional income (TPI) is the amount, if any, remaining after taking away from your assessable professional income:
- the total of the deductions that reasonably relate to this income
- a part of any apportionable deductions – for example, gifts to charity which you have shown at item D8 on your tax return.
Completing your tax return
For the Tax Office to work out your income averaging, you must complete Z item 22 on your Tax return for individuals (supplementary section) 2006 – see step 3 of the instructions for item 22 in TaxPack 2006 supplement.
The amount to write at Z is your assessable professional income less the amount at no. 1 as described in Taxable professional income above. Do not deduct any apportionable deductions - for example, gifts to charity that you have shown at item D8 of your tax return. The Tax Office will take these into account as required by no. 2 to work out your TPI and your income averaging.
At V item 22, write the total of your category 2 other income - see Other income in question 22 in TaxPack 2006 supplement - including the amount you have worked out for Z item 22. Do not include any amounts already shown at item 1, 2, 12, 13 or 14 on your tax return. If you have not shown your TPI at other items on your tax return, you must include it at V item 22. If you include your TPI at V, do not claim any deductions you used to work out that income at items D1 to D10 or D11 to D15 on your tax return.