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SAM 2000/1

COMMONWEALTH OF AUSTRALIA

A New Tax System (Goods and Services Tax) Act 1999

I, LAWRIE HILL, Assistant Commissioner, Rulings, Goods and Services Tax, and delegate of the Commissioner of Taxation, make this Determination under subsection 123-5 (1) of the A New Tax System (Goods and Services Tax) Act 1999.

Part 1 - Preliminary

1.1 Name of Determination

This Determination is the A New Tax System (Goods and Services Tax) (Simplified Accounting Methods) Determination 2000.

1.2 Commencement

This Determination commences on 1 July 2000.

1.3 Definition

In this Determination:

Act means the A New Tax System (Goods and Services Tax) Act 1999.

Information about simplified accounting methods
Under section 123-5 of the Act, the Commissioner may determine in writing an arrangement (to be known as a simplified accounting method) that:

(a)
specifies the kinds of retailers to whom it is available; and
(b)
provides a method for working out net amounts of retailers to whom the method applies.

The kinds of retailer that can be specified must all be kinds of retailers that:

(a)
sell food in the course or furtherance of carrying on their enterprise; or
(b)
make supplies that are GST-free under Subdivision 38-G of the Act (which relates to the non-commercial activities of charitable institutions, a trustee of a charitable fund or a gift-deductible fund) in the course or furtherance of carrying on their enterprise.

Several of the expressions used in section 123-5, including retailer , net amount and food , are defined in the Dictionary to the Act.

Under section 123-10 of the Act, a retailer may choose to apply a simplified accounting method that is available to the retailer. However, the retailer:

(a)
cannot revoke the choice within 12 months after the day on which the retailer made the choice; and
(b)
cannot make a further choice within 12 months after the day on which the retailer revoked a previous choice; and
(c)
cannot choose to apply a simplified accounting method in addition to another simplified accounting method that the retailer has already chosen.

The Commissioner has published a document called Simplified GST Accounting Methods for Food Retailers. The document sets out 3 accounting methods:

(a)
the business norms method;
(b)
the snapshot method;
(c)
the stock purchases method (also known as the analysis of purchases method).

A retailer described in that document may choose any of those methods as a simplified accounting method, to the extent explained in the document.

The Commissioner has also published documents called Taxfacts Simplified GST Accounting Methods. These documents are directed to specific kinds of retailers, and describe the business norms that those retailers are to use if they choose the business norms method.

The Commissioner's documents are available from the Australian Taxation Office.

Part 2 - Simplified accounting methods: general

2.1 Methods

(1)
In March 2000, the Commissioner published a document called Simplified GST Accounting Methods for Food Retailers.
(2)
For subsection 123-5 (1) of the Act, the simplified accounting method for a retailer of a kind to which the document applies is an accounting method described in the document as a method that the retailer may choose.

Note The accounting methods set out in the document are:

•
the business norms method
•
the snapshot method
•
the stock purchases method (also known as the analysis of purchases method).
However, the document describes the business norms method in terms that make it clear that that method can be used by a retailer only if the Commissioner has published detailed business norms for that kind of retailer. The business norms are essential to the proper use of the method.

Part 3 - Details of the business norms method for specified kinds of retailers

3.1 Hot bread shops

(1)
In March 2000, the Commissioner published a document called Taxfacts Simplified GST Accounting Methods for hot bread shops.
Note 1 The document is also described as Business Norms Percentages 01/2000.
Note 2 The document does not apply to all hot bread shops. It is important to read the document to determine whether it applies to a particular retailer.
(2)
For subsection 123-5 (1) of the Act, the information set out in the document is part of the business norms method that may be used by a retailer of a kind to which the document applies.

3.2 Convenience stores that prepare takeaways

(1)
In March 2000, the Commissioner published a document called Taxfacts Simplified GST Accounting Methods for convenience stores, mixed businesses and milk bars that:

(a)
do not sell fuel or alcoholic beverages; and
(b)
convert GST-free food into taxable food.

Note 1 The document is also described as Business Norms Percentages 02/2000.
Note 2 The document does not apply to all convenience stores, mixed businesses and milk bars. It is important to read the document to determine whether it applies to a particular retailer.
(2)
For subsection 123-5 (1) of the Act, the information set out in the document is part of the business norms method that may be used by a retailer of a kind to which the document applies.

3.3 Convenience stores that do not prepare takeaways

(1)
In March 2000, the Commissioner published a document called Taxfacts Simplified GST Accounting Methods for convenience stores, mixed businesses and milk bars that:

(a)
do not sell fuel or alcoholic beverages; and
(b)
only resells its products.

Note 1 The document is also described as Business Norms Percentages 03/2000.
Note 2 The document does not apply to all convenience stores, mixed businesses and milk bars. It is important to read the document to determine whether it applies to a particular retailer.
(2)
For subsection 123-5 (1) of the Act, the information set out in the document is part of the business norms method that may be used by a retailer of a kind to which the document applies.

3.4 Continental delicatessens that do not sell hot foods or prepared meals

(1)
In April 2000, the Commissioner published a document called Taxfacts Simplified GST Accounting Methods for continental delicatessens that do not sell hot foods or prepared meals.
Note 1 The document is also described as Business Norms Percentages 04/2000.
Note 2 The document does not apply to all continental delicatessens. It is important to read the document to determine whether it applies to a particular retailer.
(2)
For subsection 123-5 (1) of the Act, the information set out in the document is part of the business norms method that may be used by a retailer of a kind to which the document applies.

3.5 Cake shops

(1)
In April 2000, the Commissioner published a document called Taxfacts Simplified GST Accounting Methods for cake shops.
Note 1 The document is also described as Business Norms Percentages 05/2000.
Note 2 The document does not apply to all cake shops. It is important to read the document to determine whether it applies to a particular retailer.
(2)
For subsection 123-5 (1) of the Act, the information set out in the document is part of the business norms method that may be used by a retailer of a kind to which the document applies.

3.6 Fish retailers

(1)
In April 2000, the Commissioner published a document called Taxfacts Simplified GST Accounting Methods for fish shops that retail fresh fish and other seafood.
Note 1 The document is also described as Business Norms Percentages 06/2000.
Note 2 The document does not apply to all fish shops. It is important to read the document to determine whether it applies to a particular retailer.
(2)
For subsection 123-5 (1) of the Act, the information set out in the document is part of the business norms method that may be used by a retailer of a kind to which the document applies.

3.7 Health food shops that do not convert GST-free food into taxable food

(1)
In April 2000, the Commissioner published a document called Taxfacts Simplified GST Accounting Methods for health food shops that do not convert GST-free food into taxable food.
Note 1 The document is also described as Business Norms Percentages 07/2000.
Note 2 The document does not apply to all health food shops. It is important to read the document to determine whether it applies to a particular retailer.
(2)
For subsection 123-5 (1) of the Act, the information set out in the document is part of the business norms method that may be used by a retailer of a kind to which the document applies.

3.8 Rural convenience stores

(1)
In April 2000, the Commissioner published a document called Taxfacts Simplified GST Accounting Methods for rural convenience stores, including stores that sell fuel or that do business as an agent of Australia Post.
Note 1 The document is also described as Business Norms Percentages 08/2000.
Note 2 The document does not apply to all rural convenience stores. It is important to read the document to determine whether it applies to a particular retailer.
(2)
For subsection 123-5 (1) of the Act, the information set out in the document is part of the business norms method that may be used by a retailer of a kind to which the document applies.

3.9 Pharmacies that sell food

(1)
In April 2000, the Commissioner published a document called Taxfacts Simplified GST Accounting Methods for pharmacies with both taxable and GST-free food sales.
Note 1 The document is also described as Business Norms Percentages 09/2000.
Note 2 The document does not apply to all pharmacies. It is important to read the document to determine whether it applies to a particular retailer.
(2)
For subsection 123-5 (1) of the Act, the information set out in the document is part of the business norms method that may be used by a retailer of a kind to which the document applies.


30 June 2000

LAWRIE HILL
Assistant Commissioner, Rulings, Goods and Services Tax

Registration Number: F2006B00275

Registration Date: 1 February 2006


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