Document ID: chunk:federal_register_of_legislation:C2025C00029:section:14:p18
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 14 (pt 18/19)
Character Range: 5545383–5548160

work.
 (2) If you are a joint inventor of an invention, work out your *assessable professional income as if you were the inventor of that invention.
Note: This section means that you are treated as a special professional, even if you have never been the sole inventor of an invention.

Subdivision 405‑C—Taxable professional income and average taxable professional income

Table of sections
405‑45 Working out your taxable professional income
405‑50 Working out your average taxable professional income

405‑45  Working out your taxable professional income
  Your taxable professional income for an income year is the amount (if any) by which your *assessable professional income for that year exceeds the amount of your deductions for that year worked out as follows:

      Method statement
           Step 1. Add up any amounts you can deduct for that year (except *apportionable deductions), so far as they reasonably relate to your *assessable professional income for the year.
           Step 2. Work out the amount using the formula:
                  Note: The result may be greater than the apportionable deductions. Also, it may be negative.
           Step 3. Add the sum from Step 1 to the result from Step 2. If the result is more than nil, it is the amount of your deductions to be subtracted from your *assessable professional income.

405‑50  Working out your average taxable professional income

It is generally a 4‑year average
 (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
 (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).
 (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.
 (4) Professional year 2, professional year 3 and professional year 4 are respectively the next 3 income years after *professional year 1.
 (5) The table is as follows:

Average taxable professional income during phase‑in period
                                                                                 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

                                                            Current year
Item