Document ID: chunk:federal_register_of_legislation:C2004C00958:clause:1_5:p5
Version: federal_register_of_legislation:C2004C00958
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 5/11)
Character Range: 700600–703643

as the top slice of your taxable income.

 (2) The following diagram illustrates how the special rate works.

405‑10  Overview of the Division

For which income years do you have above‑average special professional income?

 (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.

 (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?

 (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?

 (4) Your *taxable professional income depends on your *assessable professional income.

See section 405‑45.

 (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?

 (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.

 (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.

Subdivision 405‑A—Above‑average special professional income

Table of sections

405‑15 When do you have above‑average special professional income?

405‑15  When do you have above‑average special professional income?

 (1) Your taxable income for the *current year includes above‑average special professional income if and only if:

 (a) you are an individual; and

 (b) you have been an Australian resident for all or part of the current year; and

 (c) your *taxable professional income for the current year exceeds your *average taxable professional income for the current year; and

 (d) either:

 (i) your *taxable professional income for the current year is more than $2,500; or

 (ii) your *taxable professional income for an earlier income year was more than $2,500 and you were an Australian resident for all or part of that income year.

Note: Your taxable income for an income year can include above‑average special professional income even if you meet the requirement in subparagraph (1)(d)(ii) for an income year before the 1998‑99