The Australian Tax Office has recognised that significant fluctuations can occur during the career of a professional sportsperson or a special professional such as an Author, Artist, Musician, Inventor, Performing Artist or a Production Associate.
To lessen the impact of these fluctuations, the ATO has allowed special tax provisions to apply which, in effect, will smooth the rate of tax applied.
Our experience is that almost all of our new ‘special professional’ clients have not had their prior year tax returns prepared in accordance with the provisions of the Income Tax Act and therefore have not taken advantage of the ‘Averaging for special professionals’ and therefore, in most cases, have missed out on thousands of dollars of tax refunds.
Sportax, a division of Icon Financial Management, offer a free tax review service – The Icon Promise:
“Let us review your prior year income tax returns and if we find that the prior year returns have been prepared accurately, then we will give all of the information back to you and the costs will be borne by us.”
However…If we find that the prior year returns were not originally prepared accurately, then you may be entitled to an additional tax refund of previously overpaid tax (and interest on that sum!). In that case we will amend the prior year tax returns lodged and charge a normal professional fee.