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Legislative Instrument

Goods and Services Tax: Simplified Accounting Methods Determination 2017 for Retailers who sell Food – Business Norms, Stock Purchases and Snapshot Methods

I, Jeremy Geale, Deputy Commissioner of Taxation, make this determination under subsection 123-5(1) of the A New Tax System (Goods and Services Tax) Act 1999 (GST Act).

Jeremy Geale
Deputy Commissioner of Taxation
Dated: 12 September 2017

   1. Name of determination

This determination is the Goods and Services Tax: Simplified Accounting Methods Determination 2017 for Retailers who sell Food – Business Norms, Stock Purchases and Snapshot Methods.

  2.     Commencement

This determination commences on the day after registration on the Federal Register of Legislation.

  3.      Repeal of previous determination

  (1)   This determination repeals and replaces Simplified GST Accounting Methods Legislative Instrument (No. 1) 2007 - F2007L02577, registered on 14 August 2007.

  (2)   This determination is substantially the same as the previous determination that it replaces. If you were eligible to use a particular simplified accounting method (SAM) specified in the previous determination, you will continue to be eligible to use that SAM under this determination.

  4.      Determination (Who is covered by this determination)

(1) You may use a SAM specified in this determination if you:

    (a) are a retailer that sells food that is subject to GST and food that is GST-free from the same premises; and

   (b) have a SAM turnover that is $2 million or less; and

(c) do not have adequate point-of-sale equipment; and

(d) satisfy the requirements for that particular SAM.

  Note:
  1. Terms defined in section 8 of this determination are shown in bold italics when used.

  5.     Method 1: Business norms method

  (1) Under the business norms method, if you are a retailer specified in the following table, work out for each tax period:

    (a)  your GST-free trading sales by multiplying your business norms percentage for GST-free trading sales specified in the table by the total trading sales that you make for a tax period; and

    (b)  your GST-free trading acquisitions by multiplying your business norms percentage for GST-free trading acquisitions specified in the table by the total trading stock acquisitions that you make for a tax period.

Retailer                                 Business norms  for GST-free trading sales   Business norms percentages for GST-free trading acquisitions
Cake shop                                2%                                           95%
Continental delicatessen                 85%                                          90%
Convenience store (that is a converter)  22.5%                                        30%
Convenience store (that is a reseller)   30%                                          30%
Fresh fish shop                          35%                                          98%
Health food shop                         35%                                          35%
Hot bread shop                           50%                                          75%

(2)  Under the business norms method, if you are a retailer that is a rural convenience store:

 (a) work out your GST-free trading sales for each tax period as follows:
     (i) deduct any trading sales for fuel or your Australia