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  

Guide to Division 405  

SECTION 405-10   Overview of the Division  
For which income years do you have above-average special professional income?

405-10(1)    
The first income year for which you have above-average special professional income is the first income year (professional year 1):

(a) for which your taxable professional income is more than $2,500; and

(b) during all or part of which you are an Australian resident.

405-10(2)    
After professional year 1, you have above-average special professional income for any income year for all or part of which you are an Australian resident.

Note:

You need not have been an Australian resident for every income year since professional year 1.

What is above-average special professional income?

405-10(3)    
Your above-average special professional income for the current year is the amount (if any) by which your taxable professional income exceeds your average taxable professional income.

See Subdivision 405-A .

What is taxable professional income?

405-10(4)    
Your taxable professional income depends on your assessable professional income.

See section 405-45 .

405-10(5)    
Your assessable professional income is assessable income from your work as an author, inventor, performing artist, production associate or sportsperson.

See Subdivision 405-B .

How do you work out your average taxable professional income?

405-10(6)    
Generally, your average taxable professional income for the current year is the average of your taxable professional income for the last 4 income years.

See section 405-50 .

405-10(7)    
However, special phasing-in arrangements apply to work out your average taxable professional income for an income year that is less than 4 income years after professional year 1.

These arrangements favour people who were Australian residents for at least part of the income year before professional year 1.

See section 405-50 .