Financial Arrangements Thresholds

Grange Associates Ltd - 24 January 2012

Individuals and non-individuals, subject to the following thresholds, can return income tax in relation to financial arrangements on a cash accounting basis.

The thresholds are;
  • the absolute value of a person’s income and expenditure in the income year under all financial arrangements to which the person is party to is $100,000 or less, or
  • on every day in the income year, the absolute value of all financial arrangements to which the person is party added together is $1,000,000 or less, and
  • the effect of adopting a cash accounting basis on the person’s taxable income for the income year for is $40,000 or less.

Taxpayers are able to use the straight-line basis for accounting for financial arrangements where the total level of financial arrangements on every day in the income year is $1.85 million or less.

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All information is correct at the date of article publication. Please note we provide the information as a service only. Accordingly, the contents are not intended as a substitute for specific professional advice and should not be relied upon for that purpose.   

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