Sports & entertainment

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We love our sport and pride ourselves on providing the best for our sporting professionals. There are special rules for sports professionals which is where MDC is there to provide this advice.

You can income average if you are a special professional such as an author, artist, composer, writer, inventor, performer, production associate or sportsperson.

As a professional sportsperson, you may be entitled to a concessional rate of tax where your taxable income includes certain amounts of professional income which, when added to your other income, moves you into a higher tax bracket.

Your taxable professional income is your professional income minus any deductions attributable to that income.

You don’t need to work out your average income or tax payable with income averaging – we’ll work it out from the amount of taxable professional income you show on your tax return.

Assessable professional income is used in calculating your TPI. It is income arising directly from the activities of a special professional and includes:

-rewards and prizes
-income from endorsements, advertisements, interviews, commentating and any similar service
-royalties from copyright of a literary, dramatic, musical or artistic work
-income from a patent for an invention.

If you are an author or inventor only count as your assessable professional income the income you derive from the activities of a special professional where you have been engaged or commissioned to produce one or more specified works, or to invent one or more specified inventions, and any previous or successive engagements or commissions do not result in continuous engagement over a substantial period of time.

The following are specifically excluded from assessable professional income:

any income you derive from
-coaching or training competitors
-umpiring or refereeing sport
-administering sport
-being a member of the pit crew in motor sport
-being a theatrical or sports entrepreneur
-owning or training animals

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