The STS as a system was repealed from 1 July 2007, but the former STS concessions are still available to a small business entity (SBE). ‘Small Business Entity Tax Concessions’ is a separate topic on this website. Refer to the link below for more details.
Refer also to the link below regarding the continuation of elections made when you joined STS in relation to depreciation pooling and the ‘STS Accounting Method’.
The STS was an optional system that began on 1 July 2001 and ceased as a ‘separate’ system on 30 June 2007 for income tax purposes and 31 March 2007 for FBT purposes.
You were eligible to use the STS in an income year if you met all of the following tests:
> You were carrying on a business.
> Your STS average turnover was less than $1 million. (From 01/07/07 the small business threshold is $2 million)
> You had depreciating assets that had been written down to less than $3 million at the end of the income year. (Removed from 01/07/07 for the small business concessions)
If you were eligible and decided to use the STS, you advised the Tax Office by marking a box on your income tax return for whichever year you chose to join.
You remained in the STS until you chose to leave or were no longer eligible.