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  • Statistical sample validity

    The statistical sample is valid for a maximum of three years (including the year in which the sampling takes place) so long as it remains representative of the total population that it is applied to. Re-sampling is required when, for example either:

    • your business operations have varied so significantly that an alteration in the composition of asset purchases could be expected
    • two businesses have merged, one of which was using the sampling rule and one of which was not
    • two businesses have merged, both using the sampling rule but having different percentages of revenue expenditure, or
    • there has been a demerger of a business.

    Decentralised businesses

    If your business is decentralised, so purchases of assets shown in eligible purchases are made in different centres within your business, you may perform a sampling exercise for each centre and use the results for the purchases made by that centre. You may need to do this to ensure a representative sample if the eligible purchases of the centres have different characteristics. This is more likely to be an issue for larger businesses.

    Record keeping requirements

    The sampling rule doesn't mean record retention requirements are changed. You must continue to keep all relevant records as required under the income tax and other taxation laws.

    Using sampling more broadly

    The sampling rule has been designed to dovetail with the rules for low-value pools in Division 40 of the ITAA 1997. If you wish to use statistical sampling in other circumstances, you can contact us.

    More information

    See also:

      Last modified: 25 Jan 2017QC 50915