Private ruling: Business - averaging - special professional
Date of advice: 28 November 2024
Published: 20 January 2025
Ruling period: Year ended 30 June 2022 | Year ended 30 June 2023 | Year ended 30 June 2024
Date scheme commenced: 1 July 2021

Ruling: Q1: Are you considered to be a special professional for the purposes of the concessional tax treatment under Division 405 of the Income Tax Assessment Act 1997 (ITAA 1997) in relation to your work a photographer? | A1: Yes. Subsection 405-25(1) of the ITAA 1997 states that you are a special professional if you are the author of a literary, dramatic, musical or artistic work. The note to this subsection states that the expression 'author' is a technical term from copyright law. In general, the 'author' of an artistic work is the artist, sculptor or photographer who created it. In your case you are a photographer. As such you are considered to be an author of an artistic work and therefore a special professional within the meaning given by subsection 405-25(1) of the ITAA 1997.

Relevant facts and circumstances: You have been operating a business as a sole trader offering photography and videography services. This activity has been your sole source of income for the previous few years. You are engaged by clients to shoot their events and produce artistic imagery and videos for them. The creative control over the images captured is primarily possessed by you. The photographs and videos provided to clients are edited to enhance or alter the original image captured. All income received is as a direct result of producing photographs and videos for clients.

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