STS taxpayers

Warning:

This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

End of attention

The simplified tax system (STS) is an alternative method of determining taxable income for eligible taxpayers. It began on 1 July 2001. Participation in the STS is optional.

You are eligible to be an STS taxpayer for an income year if:

• you carry on a business in that year
• you have an STS average turnover of less than $1  million in that year (the STS average turnover includes the turnover of any entities you are 'grouped with'), and
• you, together with any entities you are 'grouped with', have depreciating assets with a total adjustable value of less than $3 million at the end of the year.