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STS taxpayers

Last updated 26 August 2007

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.