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.