Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Income Tax Assessment Act 1936
1 Subsection 82KZL(1) (definition of small business taxpayer )
Repeal the definition.
Income Tax Assessment Act 1997
2 Subdivision 960 - Q
Repeal the Subdivision.
3 Subsection 995 - 1(1) (definition of average turnover )
Repeal the definition.
4 Subsection 995 - 1(1) (definition of group turnover )
Repeal the definition.
5 Subsection 995 - 1(1) (definition of small business taxpayer )
Repeal the definition.
6 Subsection 995 - 1(1) (paragraph (b) of the definition of value )
Omit "Subdivision 70 - C; and", substitute "Subdivision 70 - C.".
7 Subsection 995 - 1(1) (paragraph (c) of the definition of value )
Repeal the paragraph.
Income Tax (Transitional Provisions) Act 1997
8 At the end of section 40 - 340
Add:
Meaning of small business taxpayer
(7) An entity is a small business taxpayer for an income year if:
(a) the entity carries on a business in that year; and
(b) the entity's average turnover for that year is less than $1,000,000.
Note: An entity is treated as carrying on a business if it is winding up a business and it was previously a small business taxpayer: see subsection (11).
Meaning of average turnover
(8) An entity's average turnover for an income year (the current year ) is:
where:
"number of averaging years" is:
(a) 3; or
(b) if the entity did not carry on a business in each of the current year and the 2 years before the current year, the number of those income years in which the entity carried on a business.
Note: An entity is treated as carrying on a business if it is winding up a business and it was previously a small business taxpayer: see subsection (11).
"sum of relevant group turnovers" is the sum of:
(a) the entity's group turnover for the current year; and
(b) the entity's group turnover (if any) for the 2 preceding income years.
Meaning of group turnover
(9) The group turnover of an entity (the primary entity ) for an income year is the sum of:
(a) the value of the business supplies the primary entity made in the income year; and
(b) the value of the business supplies entities connected with the primary entity made in the income year;
reduced by:
(c) that part of the value of the business supplies the primary entity made in the income year that is attributable to supplies it made during the year to entities connected with it when they were connected with it; and
(d) that part of the value of the business supplies entities connected with the primary entity made in the income year that is attributable to supplies the connected entities made during the year to the primary entity when they were connected with it; and
(e) that part of the value of the business supplies another entity made in the income year that is attributable to supplies the other entity made to a third entity at a time when both the other entity and third entity were connected with the primary entity.
Value of business supplies
(10) The value of the business supplies an entity makes in an income year is the sum of:
(a) for taxable supplies (if any) the entity makes during the year in the course of carrying on a business--the value (as defined by section 9 - 75 of the GST Act) of the supplies; and
(b) for other supplies the entity makes during the year in the course of carrying on a business--the prices (as defined by section 9 - 75 of the GST Act) of the supplies.
Winding up a business
(11) Subsections (7) and (8) apply to an entity as if it carried on a business in an income year if:
(a) in that year the entity was winding up a business it previously carried on; and
(b) the entity was a small business taxpayer for the income year in which it stopped carrying on that business.
9 Application
The amendments made by this Schedule apply in relation to the 2007 - 08 income year and later income years.
