INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 328 - Small business entities  

SECTION 328-120   Continuing to use the STS accounting method  

328-120(1)  
This section applies if:


(a) you were an STS taxpayer for the most recent income year that started before 1 July 2005; and


(b) you continued to be an STS taxpayer until the end of the 2006-07 income year; and


(c) you used the STS accounting method for the 2005-06 and 2006-07 income years; and


(d) you are a small business entity for the 2007-08 income year.

328-120(2)  
You can continue to use the STS accounting method:


(a) for the 2007-08 income year; and


(b) for any later income year for which you are a small business entity but only if you used the STS accounting method for the income year before that later year.

Example:

You are a small business entity for the 2007-08 and 2008-09 income years and you continue to use the STS accounting method for those years. You are not a small business entity for the 2009-10 income year so you cannot continue to use the STS accounting method for that year. Because you cannot use the STS accounting method for the 2009-10 income year, you will not be able to use it again for a later income year even if you are a small business entity for that later year.




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