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 BUSINESS||AMOUNT (EXCLUDING GST) FOR ADULT/CHILD OVER 16 YEARS||AMOUNT (EXCLUDING GST) FOR CHILD 4 to16 YEARS OLD|
|Takeaway food shop||$3,670||$1,835|
|Mixed business (includes milk bar, general store and convenience store)||$4,460||$2,230|
Ref: TaxWise Business News April 2021