ATO Interpretative Decision
ATO ID 2002/856
Income Tax
Income - Graphic designer and income averagingFOI status: may be released
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This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Is the taxpayer, a graphic designer, a special professional as defined in subsection 405-25(1) of the Income Tax Assessment Act 1997 ('ITAA 1997')?
Decision
Yes. The taxpayer is a special professional as defined in subsection 405-25(1) of the ITAA 1997.
Facts
The taxpayer works as a freelance graphic designer. The taxpayer's income is not guaranteed and fluctuates from year to year.
Reasons for Decision
Division 405 of the ITAA 1997 applies special rates of tax on the above-average professional income of special professionals.
A special professional, defined in subsection 405-25(1) of the ITAA 1997, includes an author of a literary, dramatic, musical or artistic work. The note to this subsection states that expression 'author' is a technical term from copyright law. In general the 'author' of an artistic work is the artist, sculptor or photographer who created it.
The expression 'artistic work' is defined in section 10 of the Copyright Act 1968 and includes (whether the work is of artistic quality or not) a painting, sculpture, drawing, engraving or photograph.
The taxpayer as a graphic designer, is the author of an artistic work and as such is a special professional within the meaning given by subsection 405-25(1) of the ITAA 1997.
Date of decision: 2 August 2002Year of income: Year ended 30 June 1999 Year ended 30 June 2000 Year ended 30 June 2001
Legislative References:
Income Tax Assessment Act 1997
Division 405
Subsection 405-25(1)
Section 10
Keywords
Graphic artists
Income averaging
ISSN: 1445-2782
| Date: | Version: | |
| You are here | 2 August 2002 | Original statement |
| 24 April 2015 | Updated statement | |
| 5 January 2017 | Archived |