Do you use trading stock for private purposes?

It is common for certain business owners (e.g. sole traders, individuals and partnerships, etc.) to use trading stock for private purposes. If you do this, you are treated as having sold it for its cost just before you use it and as having bought it back for the same amount.

Because it is difficult in many cases to keep accurate records of transactions involving goods taken from stock for private use, the ATO publishes each year standard values (excluding GST) that can be used by proprietors of certain businesses. The latest amounts (for the current tax year ending on 30 June 2021) were published in early January (in Taxation Determination TD 2021/1).

TYPE OF BUSINESSAMOUNT (EXCLUDING GST) FOR ADULT/CHILD OVER 16 YEARSAMOUNT (EXCLUDING GST) FOR CHILD 4 to16 YEARS OLD
Bakery$1,350$675
Butcher$900$450
Restaurant/café (licensed)$4,640$1,810
Restaurant/café (unlicensed)$3,620$1,810
Caterer$3,830$1,915
Delicatessen$3,620$1,810
Fruiterer/greengrocer$930$465
Takeaway food shop$3,670$1,835
Mixed business (includes milk bar, general store and convenience store)$4,460$2,230

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Thompsons Australia Newsletters and articles are distributed by professional tax practitioners to provide information of general interest to our clients. The content of this newsletter does not constitute specific advice. Readers are encouraged to consult their tax adviser for advice on specific matters.

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