Aggregated turnover and differing income year periods - Finalised Determination Background
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Aggregated turnover and differing income year periods - Finalised Determination

- 13 October 2021

When calculating a taxpayer’s aggregated turnover, the annual turnovers of the taxpayer, entities
connected with the taxpayer and entities that are affiliates of the taxpayer are taken into account.

But what happens if the connected entities or affiliates have a different income year period than the

The Commissioner of Taxation has provided guidance on this in Taxation Determination TD 2021/7.
This guidance is the finalised version of Draft Taxation Determination TD 2021/D1. The draft
determination and the finalised determination are substantially the same.

In the Taxation Determination, the Commissioner of Taxation states that aggregated turnover is
calculated by reference to the taxpayer’s income year period, such that the connected entities’ and
affiliates’ annual turnovers for the same income year period must be taken into account
(irrespective of whether the connected entity or affiliate has the same income year period).


Taxpayer A has a 12-month income year ending on each 30 June. Connected Entity B has a 12-
month income year ending on each 31 December. When calculating the aggregated turnover for
Taxpayer A for the income year commencing 1 July 2020 and ending 30 June 2021, the annual
turnover of Connected Entity B for the period 1 July 2020 to 30 June 2021 must be calculated and
taken into account.