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, and
- 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, and
- income from a patent for an invention.
The following are specifically excluded from assessable professional income:
- a superannuation lump sum or an employment termination payment
- payments for unused annual or long service leave on retirement or termination, and
- a net capital gain.