The Simplified Taxation System (STS) was introduced into the tax law in 2000. Essentially it allows businesses with under $1m in turnover to return their income tax on a cash basis, write off purchases under $1,000, prepay expenses up to 12 months in advance and ignore annual stock take provisions.
For small businesses it is a very good scheme, however, small businesses are not taking up the scheme anywhere near as fast as it was thought they would. (There are 1.3 million small businesses in Australia, half should be on STS.)
This guide is a practical guide, written in language that the normal shop keeper could understand (no accounting jargon, etc) that aims to allow the small businessman to keep his accounting records in such a manner that they comply with the Tax Laws.
