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  • Using trading stock for private purposes

    You must account for any business trading stock that you've taken for private use.

    If you take an item for your private use, you need to:

    • account for it as if you had sold it
    • include the value of the item in your business's assessable income.

    There are 2 ways you can value this stock. You can either:

    • keep records of the actual value of goods you take from your trading stock for your own private use and report that amount; our Law Administration Practice Statement explains how to value goods – see PS LA 2004/3 (GA) Trading stock: valuation of goods taken from trading stock for private use by sole traders or partners in a partnership, or
    • use the amounts we provide as estimates of the value of goods you have taken (updated annually); these are available in Taxation Determination TD 2022/15 Income tax: value of goods taken from stock for private use for the 2022–23 income year.

    Example: recording the value of goods taken for private use

    John runs a grocery store. At the end of each week, he takes food from his grocery store for his wife and 3 children.

    John records the value of these goods and reports the amount as income in his business accounts. His records include:

    • the date
    • a description of what was taken
    • the reason stock was taken
    • the cost or market value of the item (excluding GST).
    End of example
    Last modified: 03 Nov 2022QC 44442