Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Income Tax Assessment Act 1997
1 Subsection 6 - 5(4) (note)
Repeal the note.
2 Subsection 8 - 1(3) (note 1)
Omit "Note 1", substitute "Note".
3 Subsection 8 - 1(3) (note 2)
Repeal the note.
4 Subsection 70 - 15(3) (note 1)
Omit "Note 1", substitute "Note".
5 Subsection 70 - 15(3) (note 2)
Repeal the note.
6 Section 328 - 5
Omit "3".
7 Section 328 - 5
Omit:
• you use a cash accounting system for ordinary income, general deductions and deductions for tax - related expenses and repairs; and
8 Section 328 - 10
Repeal the section.
9 Subdivision 328 - C
Repeal the Subdivision.
Income Tax (Transitional Provisions) Act 1997
10 Before Division 330
Insert:
Table of sections
328 - 115 When you stop using the STS accounting method
328 - 120 Continuing to use the STS accounting method
328 - 125 Meaning of STS accounting method
328 - 440 Becoming an STS taxpayer after stopping to be one
328 - 115 When you stop using the STS accounting method
(1) This section sets out what happens to your ordinary income and general deductions, and deductions under section 25 - 5 or 25 - 10 of the Income Tax Assessment Act 1997 , if:
(a) you are an STS taxpayer for an income year and for the following income year (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.
(2) This section also sets out what happens to your ordinary income and general deductions, and deductions under section 25 - 5 or 25 - 10 of the Income Tax Assessment Act 1997 , if:
(a) you stop being an STS taxpayer 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 , you would have derived before the changeover year (while you were an STS taxpayer) 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, you would have incurred before the changeover year (while you were an STS taxpayer) 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
If you were an STS taxpayer for your first income year that started before 1 July 2005, you can continue to use the STS accounting method for your first income year starting on or after 1 July 2005 and later income years while you continue to be an STS taxpayer.
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 by STS taxpayers for the 2004 - 05 income year.
328 - 440 Becoming an STS taxpayer after stopping to be one
Subsection 328 - 440(3) of the Income Tax Assessment Act 1997 does not apply to you, during the period of 5 years starting on 1 July 2005, if you chose to stop being an STS taxpayer for an income year before your first income year starting on or after 1 July 2005.
11 Application
The amendments made by this Schedule apply to assessments for the first income year starting on or after 1 July 2005 and later income years.