Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 328.120

  (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.