Income Tax (Transitional Provisions) Act 1997
View history note
Hide history noteThis 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 a small business entity 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.
328-115(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 are not a small business entity 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.
328-115(3)
Any ordinary income that, apart from paragraph 328-105(1) (a) of the Income Tax Assessment Act 1997 (as in force immediately before its repeal by Schedule 2 to the Tax Laws Amendment (2004 Measures No 7) Act 2005 ), you would have derived before the changeover year (while you were using the STS accounting method) 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.
328-115(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 (as in force immediately before its repeal by Schedule 2 to the Tax Laws Amendment (2004 Measures No 7) Act 2005 ), you would have incurred before the changeover year (while you were using the STS accounting method) and that you have not deducted because you have not paid them can be deducted for the changeover year.
Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited
CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.
The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.
