Income Tax Assessment Act 1997
View history note
Hide history noteIt 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.
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