Generally, average taxable professional income (ATPI) in an income year is one-quarter of the sum of your TPI for each of the preceding four years. Special rules apply for working out the ATPI if your first income averaging year was less than four years ago. So, in the first four years, ATPI is worked out as follows if you were an Australian resident during the year immediately before your year 1:
- year 1 = nil
- year 2 = one-third of TPl in year 1
- year 3 = one-quarter of the sum of your TPI in years 1 and 2
- year 4 = one-quarter of the sum of your TPl in years 1, 2 and 3.
If you were not a resident at any time during the year immediately before your year 1, phone us on 13 28 66.