A client wishes to apply income averaging for her performing income for the first time, starting with her 2022 tax return (2022–2025 returns are outstanding).
From 2016 to 2021, she had minimal performing income, and those returns did not include amounts at item 24Z since there was no tax liability and no expectation that her income would rise significantly.
I am now preparing her 2022 return and will disclose her special professional taxable income at item 24Z.
Could you please confirm how the ATO will calculate the averaging adjustment, given there is no prior 4-year average of special professional income and earlier years cannot be amended due to the expired amendment period?
Or does it mean that simply will be no averaging adjustment for 2022?
Thank you.
106 views
1 replies