This is a specialised tax concession for eligible special professionals, including actors, writers, athletes, musicians, artists and certain production associates with variable income.
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The ATO recognises that income in creative industries can vary widely from year to year, and Income Averaging may reduce the overall tax rate for eligible taxpayers.
Actors, musicians, writers and artists may need specialist review to determine whether their income pattern and work type qualify.
The questions clients ask us most about Income Averaging.
The existing services content lists actors, writers, athletes, musicians, artists and certain production associates as examples of special professionals.
No. It is a concessionary tax calculation for eligible taxpayers and the result depends on your income history and circumstances.
The current fee is $260 + GST for the Income Averaging application, plus 10% of the initial refund generated through the application. The process can take up to 12 months. Once you are in the system, Income Averaging is included as part of your annual return each year, with no additional Income Averaging fee.
The ATO recognises four broad categories of special professionals: authors or inventors, performing artists, production associates and sportspersons. This can include composers, artists, sculptors, photographers, actors, musicians, directors, producers, art directors, costume designers, set designers, production designers, choreographers, film editors, lighting designers and eligible professional sportspeople.
Yes. Some roles can sit in a grey area, particularly where the work has both creative and technical elements. We can review what you actually do and assess whether your role may qualify.
When we prepare the income averaging application we go back to the first year where more than $2,500 was earned from an averageable profession. Once the averaging is applied it applies to the years that are still open for objection with the ATO.
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