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Does the taxpayer, an animatronics engineer qualify as a 'special professional' under subsection 405-25(1) of the Income Tax Assessment Act 1997 ('ITAA 1997')?

Yes. The taxpayer, an animatronics engineer qualifies as a 'special professional' under subsection 405-25(1) of the ITAA 1997.

The taxpayer works as an animatronic engineer in the film and television industry.

The taxpayer's occupation involves creating, designing, and building animatronic and special effects rigs and related gadgetry used in the making of films and advertisements.

Section 405-5 of the ITAA 1997 provides for a special rate of income tax on above average 'special professional' income.

Paragraph 405-25(1)(d) of the ITAA 1997 includes a 'production associate' as a special professional.

A taxpayer is a production associate if they provide 'artistic support' for the activity of making a film, tape, disc or television or radio broadcast (paragraph 405-25(4)(b) of the ITAA 1997).

A taxpayer is taken to provide artistic support if they provide services in any of the roles listed in paragraph 405-25(5)(a) of the ITAA 1997 or if they provide similar services (paragraph 405-25(5)(b) of the ITAA 1997).

The taxpayer does not provide services as a person in any of the listed roles but they may provide similar services.

The taxpayer's occupation as an animatronic engineer, requires them to start with a clean canvas and to work with basic conceptual ideas to produce animatronic gadgets, mechanical devices and rigs for major production films and advertisements. The taxpayer relies on their design ability, inventiveness and artistic feel when creating these devices and mechanisms. Their services are similar to a costume, lighting or set designer, which are roles listed in paragraph 405-25(5)(a) of the ITAA 1997. In each of these roles they have overall artistic control within their area of expertise.

It is accepted that the taxpayer, as an animatronics engineer, provides artistic support and therefore qualifies as a production associate. Accordingly, the taxpayer qualifies as a special professional under subsection 405-25(1) of the ITAA 1997.