Private ruling: Income - averaging - special professional
Published: September 2013
Ruling period: Year ended 30 June 2013
Date scheme commenced: 1 July 2012

Ruling: Q1: Are you considered a production associate for the purposes of special professional averaging? | A1: No

Relevant facts and circumstances: You are employed as a type of producer. Your duties are of a managerial or administrative nature.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 405-15(1) | Income Tax Assessment Act 1997 subsection 405-25(1) | Income Tax Assessment Act 1997 subsection 405-25(4) | Income Tax Assessment Act 1997 subsection 405-25(5)

Reasons for decision: Summary: The meaning of special professional, performing artist, production associate, sportsperson and sporting competition is contained in section 405-25 of the Income Tax Assessment Act 1997 (ITAA 1997). Section 405-25(1) of the ITAA 1997 states that you are a special professional if you are: (a) the author of a literary, dramatic, musical or artistic work; or (b) the inventor of an invention; or (c) a performing artist; or (d) a production associate; or (e) a sportsperson. Subsection 405-25(4) of the ITAA 1997 states that you are a production associate if you provide artistic support for the activity of making film, tape, disc or television or radio broadcast. Although the word 'producer' appears in your job title this does not automatically entitle you to the special professionals averaging provisions. To be eligible for the averaging provisions your duties must meet the criteria of production associate under subsection 405-25(5) of the ITAA 1997. In order to meet the criteria of special professional you need to use artistic rather than technical skills in the production. There are a number of different types of producer and not all of them have an artistic input in a production. As the meaning of artistic is not provided in the income tax legislation, it is taken to have its ordinary meaning. The meaning of artistic in The Macquarie Dictionary, [Online], viewed 25 September 2013, www.macquariedictonary.com.au , is to be of, like or befitting an artist and to be naturally gifted to be an artist. Your duties as a producer are not considered to be artistic as they are of a managerial or administrative nature. Your role assists those with artistic input in the production to create their ideas by taking care of the logistics rather than the provision of artistic input. It is considered that your work duties do not meet the requirements to satisfy the criteria to be a production associate for the purposes of section 405-25 of the ITAA 1997. You are therefore not considered a special professional for the purposes of income averaging.