Document ID: chunk:federal_register_of_legislation:F2017L01274:body:0:p3
Version: federal_register_of_legislation:F2017L01274
Segment Type: other
Provision Reference: 
Character Range: 5754–8591

(a)   the "every tax period" method;
       (b)   the "two sample periods" method; or
    (c)    if eligible, the "5% GST-free stock estimation basis".

Every tax period
  (3)   Under the "every tax period" method,

(a)   work out your actual GST-free trading acquisitions for each tax period; and

(b)   work out your GST-free trading sales for each tax period as follows:

  GST-free trading acquisitions for a tax period
 total trading stock acquisitions for a tax period   x   total trading sales.

Two sample periods
  (4)   Under the "two sample periods" method,

(a)   work out your GST-free trading sales and GST-free trading acquisitions for a tax period in the following way:

    Method Statement:
          Step 1. Work out the percentages of your GST-free trading acquisitions for two sample periods that will apply to a financial year.

          The sample periods should be a continuous four-week period taken from each of the following periods:
          (a) 1 June to 31 July; and
          (b) 1 December to 31 January.

           The sample period taken from 1 June to 31 July will apply to tax periods that occur in the period 1 July to 31 December.

           The sample period taken from 1 December to 31 January will apply to tax periods that occur in the period 1 January to 30 June.

          However, if you start your business during the financial year, substitute the first sample period with a continuous four-week period taken from your first two months of trading. It will apply to all the tax periods that the substituted sample period would have applied to.

          This is your sample period percentages.

          Step 2. Work out your GST-free trading sales by multiplying the applicable sample period percentage for a tax period by your total trading sales for that tax period.

          Step. 3  Work out your GST-free trading acquisitions by multiplying the applicable sample period percentage for a tax period by your total trading stock acquisitions for that tax period.

5% GST-free stock estimation basis
  (5)   You can use the "5% GST-free stock estimation basis" if it is reasonable to conclude that the projected percentage of GST-free trading acquisitions that you will resell GST-free is not more than 5% of your total trading stock acquisitions.

  (6)   Under the "5% GST-free stock estimation basis",

(a)   work out your actual GST-free trading acquisitions for each tax period; and

(b)   work out your GST-free trading sales for a tax period as follows:
     (i)   for each product line that you resell GST-free, determine the GST-free trading acquisitions you made for that product line for a tax period;
     (ii) apply your mark-ups for each product line by the amounts worked out in (i) for that product line; and
     (iii) add up the amounts worked out in (ii) for