Document ID: chunk:federal_register_of_legislation:C2025C00126:clause:3_16:p4
Version: federal_register_of_legislation:C2025C00126
Segment Type: clause
Provision Reference: sch 3 cl 16 (pt 4/58)
Character Range: 649758–652500

a view to reducing their costs of complying with the requirements of the GST.

123‑5  Commissioner may determine simplified accounting methods
 (1) The Commissioner may determine in writing an arrangement (to be known as a simplified accounting method) that:
 (a) specifies the kinds of *retailers to whom it is available and provides a method for working out *net amounts of retailers to whom the method applies; or
 (b) specifies the kinds of *small enterprise entities to whom it is available and provides a method for working out *net amounts of small enterprise entities to whom the method applies.
 (2) The kinds of *retailer specified under paragraph (1)(a) must all be kinds of retailers that:
 (a) sell *food; or
 (b) make supplies that are *GST‑free under Subdivision 38‑G (Non‑commercial activities of charities etc.);
in the course or furtherance of *carrying on their *enterprise.
 (3) The kinds of *small enterprise entities specified under paragraph (1)(b) must all be kinds of small enterprise entities that, in the course or furtherance of *carrying on their *enterprises:
 (a) make both:
 (i) *taxable supplies; and
 (ii) supplies that are *GST‑free; or
 (b) make both:
 (i) *creditable acquisitions; and
 (ii) acquisitions that are not creditable acquisitions because the supplies, made to the small enterprise entities, to which the acquisitions relate are GST‑free.

123‑7  Meaning of small enterprise entity
 (1) An entity is a small enterprise entity at a particular time if:
 (a) the entity is a *small business entity (other than because of subsection 328‑110(4) of the *ITAA 1997) for the *income year in which the time occurs; or
 (aa) the entity is an entity covered by subsection (1A) for the income year in which the time occurs; or
 (b) at that time, the entity does not carry on a business and its *GST turnover does not exceed the *small enterprise turnover threshold.
 (1A) An entity is covered by this subsection for an *income year if:
 (a) the entity is not a *small business entity (other than because of subsection 328‑110(4) of the *ITAA 1997) for the income year; and
 (b) the entity would be such a small business entity for the income year if:
 (i) each reference in Subdivision 328‑C (about what is a small business entity) of that Act to $10 million were instead a reference to $50 million; and
 (ii) the reference in paragraph 328‑110(5)(b) of that Act to a small business entity were instead a reference to an entity covered by this subsection.
 (2) The small enterprise turnover threshold is $2 million.

123‑10  Choosing to apply a simplified accounting method
 (1) You may, by notifying the Commissioner in the *approved form:
 (a) choose to apply a *simplified accounting method if you are a