Document ID: chunk:federal_register_of_legislation:C2010C00262:clause:3_172
Version: federal_register_of_legislation:C2010C00262
Segment Type: clause
Provision Reference: sch 3 cl 172
Character Range: 66399–67621

172  Section 328‑120
Repeal the section, substitute:

328‑120  Continuing to use the STS accounting method

 (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.

 (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.