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INCOME TAX ASSESSMENT ACT 1997 - SECT 405.50 Working out your average taxable professional income

INCOME TAX ASSESSMENT ACT 1997 - SECT 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






Item





Current year

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

1

Professional year 1

Nil

Your * taxable professional income for * professional year 1

2

Professional year 2

1 / 3 of your * taxable professional income for * professional year 1

Your * taxable professional income for * professional year 1

3

Professional year 3

1 / 4 of the sum of your * taxable professional income for each of * professional years 1 and 2

1 / 2 of the sum of your * taxable professional income for each of * professional years 1 and 2

4

Professional year 4

1 / 4 of the sum of your * taxable professional income for each of * professional years 1, 2 and 3

1 / 3 of the sum of your * taxable professional income for each of * professional years 1, 2 and 3

Note:   If you were a foreign resident for any part of the income year immediately before professional year 1, the effect of item   1 of the table is that your taxable income for professional year 1 will not include above - average special professional income.

Table of Subdivisions

  Guide to Division   410

410 - A   Notice of payments

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