On Wed 9.8.2017, the ATO released Draft SAM 2017/D1GST: Simplified Accounting Methods Determination 2017 for Food Retailers – Business Norms, Stock Purchases and Snapshot Methods. This is made under s123-5(1) of the GST Act (providing for simplified methods of accounting).

It allows eligible food retailers a sampled method of calculating their net GST by setting a proportion of GST-free sales (broadly fresh food) and taxable sales (other food) together with a similar proportion of their stock acquisitions.

The Commissioner has made the draft determination to create 3 SAMs to assist eligible food retailers to estimate their GST-free trading sales and/or GST-free trading acquisitions. They are:

(i) the business norms method;

(ii) the stock purchases methods; and

(iii) the snapshot methods.

The draft repeals and replaces Simplified GST Accounting Methods Legislative Instrument (No 1) 2007, registered on 14 August 2007. The Draft SAM is substantially the same as the previous determination it replaces. If a taxpayer was eligible to use a particular SAM specified in the previous determination, they will continue to be eligible to use that SAM under the draft Determination.

Taxpayers may use a SAM specified in the draft if they:

  • are a retailer that sells food that is subject to GST and food that is GST-free from the same premises; and
  • have a SAM turnover that is $2 million or less; and
  • do not have adequate point-of-sale equipment; and
  • satisfy the requirements for that particular SAM.

[2017 draft SAM, Explanatory Statement; FJM; LTN 150, 9/8/17, TT Month]

Extract from Draft SAM

Retailer Business norms for GST-free sales Business norms percentages for GST-free purchases
Cake shop 2% 95%
Continental delicatessen 85% 90%
Convenience store (that is a converter) 22.5% 30%
Convenience store (that is a reseller) 30% 30%
Fresh fish shop 35% 98%
Health food shop 35% 35%
Hot bread shop 50% 75%
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