Commonwealth Numbered Acts

TAX LAWS AMENDMENT (SIMPLIFIED GST ACCOUNTING) ACT 2007 (NO. 112, 2007) - SCHEDULE 1

A New Tax System (Goods and Services Tax) Act 1999

1  Section 17‑99 (table item 12A)

After "retailers", insert "and small enterprise entities".

2  Section 37‑1 (table item 29A)

After "retailers", insert "and small enterprise entities".

3  Division 123 (heading)

Repeal the heading, substitute:

Division 123 -- Simplified accounting methods for retailers and small enterprise entities

4  Section 123‑1

After "retailers", insert "and small enterprise entities".

5  Paragraphs 123‑5(1)(a) and (b)

Repeal the paragraphs, substitute:

                     (a)  specifies the kinds of * retailers to whom it is available and provides a method for working out * net amounts of retailers to whom the method applies; or

                     (b)  specifies the kinds of * small enterprise entities to whom it is available and provides a method for working out * net amounts of small enterprise entities to whom the method applies.

6  At the end of section 123‑5

Add:

             (3)  The kinds of * small enterprise entities specified under paragraph (1)(b) must all be kinds of small enterprise entities that, in the course or furtherance of * carrying on their * enterprises:

                     (a)  make both:

                              (i)  * taxable supplies; and

                             (ii)  supplies that are * GST‑free; or

                     (b)  make both:

                              (i)  * creditable acquisitions; and

                             (ii)  acquisitions that are not creditable acquisitions because the supplies, made to the small enterprise entities, to which the acquisitions relate are GST‑free.

7  After section 123‑5

Insert:

123‑7   Meaning of small enterprise entity

             (1)  An entity is a small enterprise entity at a particular time if:

                     (a)  the entity is a * small business entity (other than because of subsection 328‑110(4) of the * ITAA 1997) for the * income year in which the time occurs; or

                     (b)  at that time, the entity does not carry on a business and its * GST turnover does not exceed the * small enterprise turnover threshold.

             (2)  The small enterprise turnover threshold is $2 million.

8  After paragraph 123‑10(1)(a)

Insert:

                    (aa)  choose to apply a * simplified accounting method if you are a * small enterprise entity of the kind to whom the method is available; or

9  Paragraph 123‑10(1)(b)

Omit "to apply the method", substitute "under paragraph (a) or (aa)".

10  Paragraph 123‑10(2)(b)

Repeal the paragraph, substitute:

                     (b)  cannot make a further choice as a * retailer within 12 months after the day on which you revoked a previous choice as a retailer; and

                    (ba)  cannot make a further choice as a * small enterprise entity within 12 months after the day on which you revoked a previous choice as a small enterprise entity; and

11  Paragraph 123‑10(4)(a)

Omit "if you cease to be a * retailer", substitute "if you made your choice as a * retailer and cease to be a retailer".

12  After paragraph 123‑10(4)(a)

Insert:

                    (aa)  if you made your choice as a * small enterprise entity and cease to be a small enterprise entity of the kind to whom the method is available--from the start of the tax period occurring after the day on which you cease to be such a small enterprise entity; or

13  Subsection 123‑15(1)

After " * retailer", insert "or a * small enterprise entity".

14  Section 188‑5 (after table item 4)

Insert:

15  After paragraph 188‑10(3)(b)

Insert:

                    (ba)  the * small enterprise turnover threshold;

16  Section 195‑1

Insert:

"small enterprise entity" has the meaning given by subsection 123-7(1).

17  Section 195‑1

Insert:

"small enterprise turnover threshold" has the meaning given by subsection 123-7(2).

18  Application

The amendments made by this Schedule apply in relation to net amounts for tax periods starting on or after 1 July 2007.

[ Minister's second reading speech made in--

House of Representatives on 13 June 2007

Senate on 20 June 2007 ]