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Taxable professional income

Last updated 27 May 2020

TPI is the amount (if any) remaining after taking away from your assessable professional income:

  • the total of the deductions that reasonably relate to your assessable professional income
  • the part of any apportionable deductions (for example, gifts to charity which you have shown at item D9 on your tax return) that are to be taken into account in calculating your TPI.

Assessable professional income

Assessable professional income is used in calculating your TPI. It is income arising directly from the activities of a special professional and includes:

  • rewards and prizes
  • income from endorsements, advertisements, interviews, commentating and any similar service
  • royalties from copyright of a literary, dramatic, musical or artistic work
  • income from a patent for an invention.

If you are an author or inventor only count as your assessable professional income the income you derive from the activities of a special professional where you have been engaged or commissioned to produce one or more specified works, or to invent one or more specified inventions, and any previous or successive engagements or commissions do not result in continuous engagement over a substantial period of time.

The following are specifically excluded from assessable professional income:

  • any income you derive from
    • coaching or training competitors
    • umpiring or refereeing sport
    • administering sport
    • being a member of the pit crew in motor sport
    • being a theatrical or sports entrepreneur
    • owning or training animals
  • a superannuation lump sum or an employment termination payment
  • payments for unused annual or long service leave on retirement or termination
  • a net capital gain.