Tax periods are the reporting periods for the GST.

Reporting periods are either every one or three months. The only other variation occurs in relation to concluding tax periods which will be discussed later.

Generally, an entity has a choice in relation to a

However, monthly tax periods can be compulsory in some circumstances. A monthly tax period is each calendar month, whilst quarterly is at the conclusion of every three months.

For example, if the entity is generally in a net refund position (such as many exporters) and wishes to claim the input tax credits every month rather than every 3 months. If an election is made the entity can start using monthly tax periods on 1 January, 1 April, 1 July or 1 October.

The entity may voluntarily change back to quarterly tax periods after 12 months provided annual turnover is below the turnover threshold of $20 million.

If an entity changes back it starts using 3 month tax periods on 1 January, 1 April, 1 July or 1 October.

For example, Manufacturing Coy invests in heavy capital expenditure over several months and wants to claim inputs tax credits as early as possible. The company makes an election on 15 July 2000 to use one month tax periods.

The outcomes of the election are that the three month tax period will end on 30 September 2000. A one month tax period will commence on 1 October 2000. When Manufacturing Coy completes its expenditure program in late February 2001 it may wish to withdraw its election for one month tax periods.

However, Manufacturing Coy must continue with one month tax periods until September of 2001 and then recommence three month periods from 1 October 2001.

Monthly tax periods are compulsory if:

Under Section 27-30, the Commissioner can determine that any specified period is a tax period.

These determinations will exist to assist in the effective operation of the legislation when tax periods are changed. The period specified by the Commissioner must be less than three months long. Any period longer than three months would result in an overlap with a tax period. This could occur, for example, where an entity with 3 month tax periods exceeds the $20 million tax period turnover threshold during the period and must change to one month tax periods.

Furthermore, where the end of a commercial accounting period does not coincide with the end of a tax period, the entity can end the tax period seven days earlier or later than the relevant tax period.

This measure changes the days on which the periods end, but does not change a three or one month tax period. The specified date of lodgment or making payments does not change (section 27-35).

For example, the entity may have quarterly tax periods, but the entity's accounting practice is to balance the books every Monday, the entity can choose to change the end of its tax period within seven days of the end of the quarter so it falls on a Monday.

If the entity ceases to carry on an enterprise, then the entity's concluding tax period finishes on the day before the entity ceases that enterprise. An entity also has a concluding tax period in the event of

The concluding tax period ceases on the day before the death, bankruptcy, liquidation or receivership.