Document ID: chunk:federal_register_of_legislation:C2004A00846:clause:1_1:p1
Version: federal_register_of_legislation:C2004A00846
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 1/21)
Character Range: 1560–4379

1  Before Division 330
Insert:

Division 328—STS taxpayers

Table of Subdivisions

328‑A Guide to Division 328
328‑B Objects of this Division
328‑C Accounting method for STS taxpayers
328‑D Capital allowances for STS taxpayers
328‑E Trading stock for STS taxpayers
328‑F Entities eligible to be STS taxpayers
328‑G Entering and leaving the STS

Subdivision 328‑A—Guide to Division 328

Table of sections

328‑5 What this Division is about
328‑10 Map of this Division

328‑5  What this Division is about

      This Division gives you a choice to change the way the income tax law applies to you in these 3 ways if you are carrying on a business with a small turnover, and you pass certain other criteria:
         • you use a cash accounting system for ordinary income, general deductions and deductions for tax‑related expenses and repairs; and
         • you only account for annual changes in trading stock value that are more than $5,000; and
         • you put your depreciating assets into either a long life pool or a general pool and treat each pool as a single asset.
      In usual circumstances, these changes will simplify the working out of your taxable income, and so reduce your compliance costs.

328‑10  Map of this Division

  The following map shows the elements of the simplified tax system and how they relate to each other:

Subdivision 328‑B—Objects of this Division

328‑50  Objects of this Division

 (1) The main object of this Division is to offer eligible small businesses the choice of a new platform to deal with their tax. The platform is designed to benefit those businesses in one or more of these ways:

• reducing their tax;

• providing simpler rules for determining their income and deductions;

• providing simpler capital allowances and trading stock requirements;

• reducing their compliance costs.

 (2) This Division also provides rules that are intended to prevent other businesses from taking advantage of those benefits.

Subdivision 328‑C—Accounting method for STS taxpayers

Guide to Subdivision 328‑C

328‑100  What this Subdivision is about

      STS taxpayers account for their ordinary income when received and general deductions when paid.

Table of sections

Operative provisions

328‑105 STS accounting method
328‑110 When you start being an STS taxpayer
328‑115 When you stop being an STS taxpayer

[This is the end of the Guide.]

Operative provisions

328‑105  STS accounting method

 (1) While you are an *STS taxpayer, this Act applies to you as if:
 (a) an amount that would be included in your assessable income under section 6‑5 when *derived were derived only when you received it; and

Note: You are taken to have received an amount when it is applied or dealt with on your behalf or as you direct: see subsection 6‑5(4).
 (b) an amount