Document ID: chunk:federal_register_of_legislation:C2004A00846:clause:1_1:p17
Version: federal_register_of_legislation:C2004A00846
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 17/21)
Character Range: 40297–42779

(1) Your STS average turnover for an income year (the present year) is:
where:

number of averaging years is:
 (a) 3; or
 (b) the number of years you take into account under paragraph (b) of the definition of sum of relevant STS group turnovers.

sum of relevant STS group turnovers is:
 (a) the sum of your *STS group turnovers for any 3 of the previous 4 income years; or
 (b) if you did not carry on a *business in each of those last 4 years—the sum of your STS group turnovers for each of those years in which you carried on a business.

 (2) For the purpose of working out your *STS average turnover under subsection (1) where you or a grouped entity carried on a *business for part only of one or more of those years, use a reasonable estimate of what your *STS group turnover would have been for that year or those years if you and the grouped entity had carried on a business throughout those years.

 (3) You work out your STS average turnover for an income year (also the present year) in this way if you are not eligible to be an *STS taxpayer for that year using subsection (1):
 (a) work out your *STS group turnover for the present year or a reasonable estimate of it and a reasonable estimate of it for each of the 2 following income years (ignoring any of those years if you do not expect to be carrying on a *business at any time in that year); and
 (b) work out the average of your *STS group turnovers for those years.

 (4) For the purpose of working out your *STS average turnover under subsection (3) where you or a grouped entity carried on a *business for part only of the present year, use a reasonable estimate of what your *STS group turnover would have been for that year if you and the grouped entity had carried on a business throughout that year.

Example: Kevin starts his locksmith business on 1 January 2002. He decides that he would like to enter the STS. He works out his STS average turnover for the income year as $420,000, calculated as follows:
                  *   Kevin's estimated turnover for the period 1 January 2002 to 30 June 2002 is $200,000; and
                  *   he estimates that, if he had been in business for the period 1 July 2001 to 31 December 2001, his turnover would have been $190,000, making a total of $390,000 for the year; and
                  *   his estimated turnover for the 2002‑03 year is $420,000, and the estimate for the 2003‑04 year is $450,000.

 The total STS turnover for the 3 years is $1,260,000,