Trading stock taken for private use
It is common in a number of industries for trading stock to be used 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 2020–21 tax year) were published in early January.
|Type of Business||Amount (excluding GST) for Adult/Child over 16 years||Amount (excluding GST) for Child 4 to 16 years old|
|Takeaway food shop||$3,670||$1,835|
|Mixed business (includes milk bar, general store and convenience store)||$4,460||$2,230|
(Table taken from Taxation Determination TD 2021/1)
Ref: TaxWise Business February 2021