For us to work out your income averaging, you must complete Z item 24 on your Tax return for individuals (supplementary section) 2021. See step 3 item 24 in Individual tax return instructions supplement 2021 and read the following:
The amount to write at Z item 24 on your tax return (supplementary section) is your assessable professional income less the total of your deductions that reasonably relate to this income. Do not deduct any apportionable deductions, for example, gifts to charity that you have shown at item D9 on your tax return. We will take these into account to work out your TPI and your income averaging.
At V item 24 on your tax return (supplementary section), write the total of your category 4 other income (see step 1 item 24 in Individual tax return instructions supplement 2021), including the amount you wrote at Z item 24. Do not include any amounts already shown at item 1, 2, 13, 14 or 15 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 24. If you include your TPI at V, do not claim any deductions you used to work out your TPI at items D1 to D10 or D11 to D15 on your tax return.
You can income average if you are a special professional such as an author, artist, composer, writer, inventor, performer, production associate or sportsperson. This guide will help explain income averaging.