New simplified GST accounting method for food retailers 24.11.2005
The Tax Office has issued a new determination setting out a'Simplified GST accounting method' for food retailers that have "adequate" point of sale equipment.  
 
They have provided it to help taxpayers work out, at the end of their tax period, the amount of GST they have to pay, or the amount they can claim as a refund. 
 
NEW simplified GST accounting method: 
 
This method is only available to supermarkets or convenience stores (excluding petrol stations) that: 
 
• have adequate point-of-sale equipment; 
• only convert a minimal amount of goods from GST-free inputs into taxable supplies (5% or less of sales); and 
• have an annual turnover of $2 million or less. 
 
To use this method, eligible taxpayers examine the total sales in each tax period and work out what percentage of their total sales are GST-free. They then apply this percentage to their trading stock purchases to estimate their GST-free purchases. 
 
Supermarkets or convenience stores must make an election before they use this new method. The Tax Office has stated that Election forms will become available mid-September 2005.  
 
When does it commence?  
 
It is effective from 1 October 2005 , although the Commissioner acknowledges that Parliament may still disallow it so the determination may not come into effect. 
 
The Commissioner is monitoring Parliament to ensure that it is passed. 
 
If, however, the Parliament disallows the determination, the Commissioner will alert businesses and their representatives of the disallowance via the Tax Office Website at www.ato.gov.au.

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