An early balancing corporate tax entity is one that has obtained the Commissioner's permission to use an income year that ends on a date other than 30 June (the standard income year). These companies are granted an approved substituted accounting period (SAP) which is in lieu of an income year ending on 30 June.
Generally, an early balancing corporate tax entity is one that has its 2001-2002 income year end before 30 June 2002.
For more information on SAPs, refer to Income Tax Ruling, IT 2360.
Savcor Ltd is a public company. It obtained the Commissioner's approval to have its income year start on 1 January and end on 31 December. Savcor Ltd is an early balancing company. This means that Savcor Ltd's 2001-2002 income year would end on 31 December 2001 in lieu of 30 June 2002.