With the World Cup 2018 Russia now very much on the way, we want to share some tax tips about Income averaging for special professionals (SPIA), especially for Sportsperson.
According to the ATO，you are a special professional if you compete in sporting activities where you primarily use physical prowess, physical strength or physical stamina. A navigator in car rallying, a coxswain in rowing or a similar competitor is also a special professional. In order to apply for SPIA, you must earn a taxable income of more than $2,500 in the financial year from the above activities.
As a special professional who is also an Australian resident for tax purpose, you may eligible for the tax concession which allow you to apply lower tax rates to your sports derived income to lower your overall tax liability.
Apart from that, Sportsperson can claim work-related deductions. Tax rulings have determined that sportsperson may be eligible to claim home to work travel expense deduction, and also expenses related to following journeys, such as training, matches and competitions, appointments with medical professionals, airports for sports related travel, and public promotional appearances.
In addition, there are other expenses can be claimed as deductions, such as Player management fees; Travel, accommodation & insurance expenses for sporting related travel; Expenses whilst attending training camps; Purchase of supplements and sporting clothing; Depreciation & Maintenance on training equipment; Regular medical sporting related fees, etc.
SPIA is also available for Authors or inventors, performing artists, production associates and performers.
Carmen Du is a Chartered Accountant in the Brisbane office, delivering tailored financial advice with expertise in consolidation and reporting to support business growth.
