Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 405 - Above-average special professional income of authors, inventors, performing artists, production associates and sportspersons  

Subdivision 405-C - Taxable professional income and average taxable professional income  

SECTION 405-50   Working out your average taxable professional income  
It is generally a 4-year average

405-50(1)    
Work out your average taxable professional income for the * current year by:


(a) adding up your * taxable professional income for each of the last 4 income years before the current year; and


(b) dividing the total by 4.

Phasing-in arrangements for new professionals

405-50(2)    
However, if the * current year is less than 4 income years after * professional year 1, work out your average taxable professional income using the table in subsection (5).

405-50(3)    
Professional year 1 is the first income year:


(a) during which you were an Australian resident (for all or part of the income year); and


(b) for which your * taxable professional income was more than $2,500.

405-50(4)    
Professional year 2 , professional year 3 and professional year 4 are respectively the next 3 income years after * professional year 1.

405-50(5)    


The table is as follows:


Average taxable professional income during phase-in period
Item Current year Average taxable professional income if you were an Australian resident for all or part of the income year immediately before professional year 1 Average taxable professional income if you were a foreign resident for any of the income year immediately before professional year 1
1 Professional year 1 Nil Your *taxable professional income for *professional year 1
.
2 Professional year 2 ⅓ of your *taxable professional income for *professional year 1 Your *taxable professional income for *professional year 1
.
3 Professional year 3 ¼ of the sum of your *taxable professional income for each of *professional years 1 and 2 ½ of the sum of your *taxable professional income for each of *professional years 1 and 2
.
4 Professional year 4 ¼ of the sum of your *taxable professional income for each of *professional years 1, 2 and 3 ⅓ of the sum of your *taxable professional income for each of *professional years 1, 2 and 3

Note:

If you were a foreign resident for any part of the income year immediately before professional year 1, the effect of item 1 of the table is that your taxable income for professional year 1 will not include above-average special professional income.



View surrounding sectionsView surrounding sectionsBack to top


This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.