CHAPTER 3
-
SPECIALIST LIABILITY RULES
PART 3-45
-
RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS
Division 328
-
Small business entities
History
Div 328 (heading) substituted by
No 80 of 2007
, s 3 and Sch 3 item 1, applicable in relation to the 2007-08 income year and later income years. The heading formerly read:
Division 328
-
STS taxpayers
Div 328 inserted by No 78 of 2001.
Subdivision 328-E
-
Trading stock for small and medium business entities
History
Subdiv 328-E heading amended by No 92 of 2020, s 3 and Sch 3 item 30, by substituting
"
small and medium business entities
"
for
"
small business entities
"
, effective 1 January 2021 and applicable in relation to income years starting on or after 1 July 2021.
Subdiv 328-E heading substituted by
No 80 of 2007
, s 3 and Sch 3 item 71, applicable in relation to the 2007-08 income year and later income years. The heading formerly read:
Subdivision 328-E
-
Trading stock for STS taxpayers
Subdiv 328-E inserted by No 78 of 2001.
Operative provisions
SECTION 328-295
Value of trading stock on hand
328-295(1)
If you make a choice under section
328-285
for an income year, the
*
value of all your
*
trading stock on hand at the start of the income year is:
(a)
the same amount as was taken into account under this Act at the end of the previous income year; or
(b)
zero if no item of trading stock was taken into account under this Act at the end of the previous income year.
Note:
The amount taken into account at the end of the previous income year is worked out under either section
70-45
or subsection (2) of this section.
History
Archived:
S 328-295(1) (note 2) repealed as inoperative by
No 101 of 2006
, s 3 and Sch 1 item 5 and Sch 2 item 718 (renaming
"
Note 1
"
as
"
Note
"
), effective 14 September 2006. For
application and savings provisions
and for former wording see the
CCH Australian Income Tax Legislation archive
.
History
S 328-295(1) amended by
No 80 of 2007
, s 3 and Sch 3 item 81, by substituting
"
make a choice under section 328-285
"
for
"
are an *STS taxpayer
"
, applicable in relation to the 2007-08 income year and later income years.
S 328-295(1) amended by No 119 of 2002.
328-295(2)
If you make a choice under section
328-285
for an income year, this Act applies to you as if the
*
value of all your
*
trading stock on hand at the end of the year were equal to the value of all your trading stock on hand at the start of the year.
Note:
If you do not make a choice under section
328-285
, the value of trading stock on hand at the end of the year is worked out using section
70-45
.
Example:
Angela operates a riding school, and also sells riding gear. Her business is a small business entity for the 2008-09 income year and makes a choice under section
328-285
for that year.
At the start of the 2008-09 income year, the opening value of Angela
'
s trading stock is $30,000. Using her reliable inventory system, she estimates the closing value to be $34,000.
The closing value for the 2008-09 income year, and the opening value for the 2009-10 income year, will be $30,000.
History
S 328-295(2) amended by
No 80 of 2007
, s 3 and Sch 3 items 82 to 84, by substituting
"
you make a choice under section 328-285 for an income year
"
for
"
subsection 328-285(1) applies to you for an income year and you have not made a choice under subsection 328-285(2) for that year
"
, substituting
"
If you do not make a choice under section 328-285
"
for
"
If subsection 328-285(1) does not apply
"
in the note and substituting the example, applicable in relation to the 2007-08 income year and later income years. The example formerly read:
Example:
Angela operates a riding school, and also sells riding gear. She is an STS taxpayer.
At the start of the 2003-04 income year, the opening value of Angela
'
s trading stock is $30,000. Using her reliable inventory system, she estimates the closing value to be $34,000.
The closing value for the 2003-04 income year, and the opening value for the 2004-05 income year, will be $30,000.
S 328-295 inserted by No 78 of 2001.
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