Issue
Is the taxpayer, a graphic designer, a special professional as defined in subsection 405-25(1) of the Income Tax Assessment Act 1997 (ITAA 1997)?
Decision
Yes. The taxpayer is a special professional as defined in subsection 405-25(1) of the ITAA 1997.
Facts
The taxpayer works as a freelance graphic designer. The taxpayer's income is not guaranteed and fluctuates from year to year.
Reasons for Decision
Division 405 of the ITAA 1997 applies special rates of tax on the above-average professional income of special professionals.
A special professional, defined in subsection 405 25(1) of the ITAA 1997, includes an author of a literary, dramatic, musical or artistic work. The note to this subsection states that the expression 'author' is a technical term from copyright law. In general the 'author' of an artistic work is the artist, sculptor or photographer who created it. It should be noted also that the expression 'literary, dramatic, musical or artistic work' was adopted from copyright law.
The expression 'artistic work' is defined in section 10 of the Copyright Act 1968 and includes (whether the work is of artistic quality or not) a painting, sculpture, drawing, engraving or photograph, or a work of artistic craftsmanship (whether or not a painting, sculpture, drawing, engraving or photograph).
The taxpayer as a graphic designer, is the author of an artistic work and as such is a special professional within the meaning given by subsection 405-25(1) of the ITAA 1997.
Amendment History
Date of Amendment Part Comment 24 April 2015 Issue Updated for style. Reason for Decision Updated for clarity.
Date of Amendment | Part | Comment
24 April 2015 | Issue | Updated for style.
Reason for Decision | Updated for clarity.