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Last updated 31 August 2006

To be eligible to be an STS taxpayer for an income year, a taxpayer must satisfy three tests. They must:

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

Grouping rules

Special rules called the STS grouping rules will determine who the taxpayer is grouped with. These rules prevent larger businesses from structuring or restructuring their affairs to take advantage of the STS. For more information on the grouping rules, see Taxation Ruling TR 2002/6 - Income tax: Simplified Tax System: eligibility - grouping rules (*STS affiliate, control of non fixed trusts) or phone the Business Infoline on 13 28 66.