Document ID: chunk:federal_register_of_legislation:C2024C00267:section:3:p48
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 3 (pt 48/64)
Character Range: 518606–521173

you are not a small business entity for an income year (also the changeover year); and
 (b) you were using the STS accounting method for the income year before the changeover year; and
 (c) you change to an accruals accounting method for the changeover year.
 (3) Any ordinary income that, apart from paragraph 328‑105(1)(a) of the Income Tax Assessment Act 1997 (as in force immediately before its repeal by Schedule 2 to the Tax Laws Amendment (2004 Measures No. 7) Act 2005), you would have derived before the changeover year (while you were using the STS accounting method) and you have not included in your assessable income because you have not received it is included in your assessable income for the changeover year.
 (4) Any general deductions, and deductions under section 25‑5 or 25‑10 of the Income Tax Assessment Act 1997, that, apart from paragraph 328‑105(1)(b) of that Act (as in force immediately before its repeal by Schedule 2 to the Tax Laws Amendment (2004 Measures No. 7) Act 2005), you would have incurred before the changeover year (while you were using the STS accounting method) and that you have not deducted because you have not paid them can be deducted for the changeover year.

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.

328‑125  Meaning of STS accounting method
  In sections 328‑115 and 328‑120, STS accounting method means the accounting method that was required by the Income Tax Assessment Act 1997 to be used