Document ID: chunk:federal_register_of_legislation:C2025C00126:section:14:p1
Version: federal_register_of_legislation:C2025C00126
Segment Type: section
Provision Reference: s 14 (pt 1/2)
Character Range: 150180–152768

14                          Tradex scheme goods                                                Division 141

Subdivision 29‑B—Accounting on a cash basis

29‑40  Choosing to account on a cash basis
 (1) You may choose to *account on a cash basis, with effect from the first day of the tax period that you choose, if:
 (a) you are a *small business entity (other than because of subsection 328‑110(4) of the *ITAA 1997) for the *income year in which you make your choice; or
 (ab) you do not carry on a *business and your *GST turnover does not exceed the *cash accounting turnover threshold; or
 (b) for income tax purposes, you account for your income using the receipts method; or
 (c) each of the *enterprises that you *carry on is an enterprise of a kind that the Commissioner determines, in writing, to be a kind of enterprise in respect of which a choice to *account on a cash basis may be made under this section.
 (3) The cash accounting turnover threshold is:
 (a) $2 million; or
 (b) such higher amount as the regulations specify.

29‑45  Permission to account on a cash basis
 (1) The Commissioner may permit you to *account on a cash basis if:
 (a) you apply to the Commissioner in the *approved form for permission to account on a cash basis; and
 (b) the Commissioner is satisfied that, having regard to:
 (i) the nature and size of the *enterprise that you *carry on; and
 (ii) the nature of the accounting system that you use;
  it is appropriate to permit you to account on a cash basis.
Note: Refusing to permit you to account on a cash basis is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).
 (2) The Commissioner must notify you in writing of any decision he or she makes in relation to you under this section. If the Commissioner decides to permit you to *account on a cash basis, the notice must specify the date of effect of your permission.
Note: Deciding the date of effect of your permission to account on a cash basis is a reviewable GST decision (see Subdivision 110‑F in Schedule 1 to the Taxation Administration Act 1953).

29‑50  Ceasing to account on a cash basis
 (1) You cease to *account on a cash basis if:
 (a) in a case to which paragraph 29‑40(1)(a) applied—you are not a *small business entity of the kind referred to in that paragraph for an *income year and you do not have permission to *account on a cash basis; or
 (ab) in a case to which paragraph 29‑40(1)(ab) applied—you do not satisfy the requirements of that paragraph and you do not have permission to account on a cash basis; or