Trading Stock taken for private use

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 the change in use 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 2019-20 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 to16 YEARS OLD
Bakery $1,350 $675
Butcher $850 $425
Restaurant/café (licensed) $4,640 $1,750
Restaurant/café (unlicensed) $3,500 $1,750
Caterer $3,790 $1,895
Delicatessen $3,500 $1,750
Fruiterer/greengrocer $880 $440
Takeaway food shop $3,440 $1,720
Mixed business (includes milk bar, general store and convenience store) $4,260 $2,130

Table taken from Taxation Determination TD 2019/1

https://www.ato.gov.au/law/view/document?docid=TXD/TD20201/NAT/ATO/00001

Ref: TaxWise Business February 2020

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