Commonwealth Consolidated Acts

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INCOME TAX ASSESSMENT ACT 1997 - SECT 405.5

Special rate of income tax on your above-average special professional income

             (1)  If you have above-average special professional income, the Income Tax Rates Act 1986 generally sets a special rate so that the amount of income tax you pay on the top 4 / 5 of your above-average special professional income is effectively 4 times what you would pay on the bottom 1 / 5 of that income at basic rates.

Note :         Your overall income tax will be less only if 2 marginal rates of income tax would apply to your above-average special professional income if it were treated as the top slice of your taxable income.

             (2)  The following diagram illustrates how the special rate works.



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