Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 328.120

General rule

  (1)   An entity's annual turnover for an income year is the total * ordinary income that the entity * derives in the income year in the ordinary course of carrying on a * business.

Exclusion of amounts relating to GST

  (2)   In working out an entity's * annual turnover for an income year, do not include any amount that is * non - assessable non - exempt income under section   17 - 5 (which is about GST).

Exclusion of amounts derived from sales of retail fuel

  (3)   In working out an entity's * annual turnover for an income year, do not include any amounts of * ordinary income the entity * derives from sales of * retail fuel.

Amounts derived from dealings with associates

  (4)   In working out an entity's * annual turnover for an income year, the amount of * ordinary income the entity * derives from any dealing with an * associate of the entity is the amount of ordinary income the entity would derive from the dealing if it were at * arm's length.

Note:   Amounts derived in an income year from any dealings between an entity and an associate that is a relevant entity within the meaning of section   328 - 115 are not included in the entity's aggregated turnover for that year: see subsection   328 - 115(3).

Business carried on for part of income year only

  (5)   If an entity does not carry on a * business for the whole of an income year, the entity's * annual turnover for the income year must be worked out using a reasonable estimate of what the entity's annual turnover for the income year would be if the entity carried on a business for the whole of the income year.

Regulations may provide for different calculation of annual turnover

  (6)   The regulations may provide that an entity's * annual turnover for an income year is to be calculated in a different way, but only so that it would be less than the amount worked out under this section.