Tax Laws Amendment (Small Business) Act 2007 (80 of 2007)
Schedule 3 STS taxpayers
Part 3 Application and transitional
Income Tax (Transitional Provisions) Act 1997
165 Before section 328-115
Insert:
328-1 Definitions
In this Division:
general STS pool means a general STS pool under old Subdivision 328-D.
long life STS pool means a long life STS pool under old Subdivision 328-D.
new Subdivision 328-D means Subdivision 328-D of the Income Tax Assessment Act 1997, as in force after the commencement of this section.
old Subdivision 328-D means Subdivision 328-D of the Income Tax Assessment Act 1997, as in force immediately before the commencement of this section.
STS taxpayer means an STS taxpayer within the meaning of Division 328 of the Income Tax Assessment Act 1997, as in force immediately before the commencement of this section.
328-110 Working out whether you are a small business entity for the 2007-08 or 2008-09 income year - turnover for earlier income years
(1) This section applies for the purpose of working out whether you are a small business entity (other than because of subsection 328-110(4) of the Income Tax Assessment Act 1997) for the 2007-08 or 2008-09 income year.
(2) You work out your aggregated turnover for the 2005-06 or 2006-07 income year as if the amendments made by Schedule 1 to the Tax Laws Amendment (Small Business) Act 2007 had been in force in relation to that year.
(3) However, your aggregated turnover for the 2005-06 income year is taken to be less than $2 million if:
(a) your aggregated turnover for the 2005-06 income year (worked out in accordance with subsection (2)) is $2 million or more; but
(b) your STS group turnover for that year (worked out under Subdivision 328-F of the Income Tax Assessment Act 1997, as in force immediately before the commencement of this section) is less than $2 million.
328-111 Access to certain small business concessions for former STS taxpayers that are winding up a business
(1) This section applies if:
(a) in the 2007-08 income year or a later income year you are winding up a business you previously carried on; and
(b) you were an STS taxpayer for the income year in which you stopped carrying on that business.
(2) The following provisions apply as if you are a small business entity for the income year in which you are winding up the business:
(a) Subdivision 328-D of the Income Tax Assessment Act 1997 (simpler rules for depreciating assets);
(b) Subdivision 328-E of the Income Tax Assessment Act 1997 (simplified trading stock rules);
(c) Subdivision 61-J of the Income Tax Assessment Act 1997 (25% entrepreneurs’ tax offset);
(d) sections 82KZM and 82KZMD of the Income Tax Assessment Act 1936 (deducting certain prepaid expenses immediately);
(e) section 170 of the Income Tax Assessment Act 1936 (standard 2-year period for amending assessments).
328-112 Working out whether you are a small business entity for certain small business concessions - entities connected with you
(1) For the purpose of working out whether you are a small business entity for the 2007-08, 2008-09, 2009-10 or 2010-11 income year (each a relevant income year ) for the purposes of a provision to which subsection (3) applies:
(a) subsection 328-125(4) of the Income Tax Assessment Act 1997 does not apply; and
(b) the following subsection applies instead.
(2) An entity (the first entity ) controls a discretionary trust for a relevant income year if, for any of the 4 income years (a previous income year ) before that year:
(a) if the previous income year is before the 2007-08 income year - the trustee of the trust made a distribution of $100,000 or more to the first entity, any of its affiliates, or the first entity and any of its affiliates; or
(b) if the previous income year is the 2007-08 income year or a later income year:
(i) the trustee of the trust paid to, or applied for the benefit of, the first entity, any of the first entity’s affiliates, or the first entity and any of its affiliates, any of the income or capital of the trust; and
(ii) the percentage (the control percentage ) of the income or capital paid or applied is at least 40% of the total amount of income or capital paid or applied by the trustee for that year.
(3) This subsection applies to the following provisions:
(a) Subdivision 328-D of the Income Tax Assessment Act 1997 (simpler rules for depreciating assets);
(b) Subdivision 328-E of the Income Tax Assessment Act 1997 (simplified trading stock rules);
(c) Subdivision 61-J of the Income Tax Assessment Act 1997 (25% entrepreneurs’ tax offset);
(d) sections 82KZM and 82KZMD of the Income Tax Assessment Act 1936 (deducting certain prepaid expenses immediately);
(e) section 170 of the Income Tax Assessment Act 1936 (standard 2-year period for amending assessments).