Show download pdf controls
  • Using trading stock for private purposes

    If you take an item of your business's trading stock 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 two 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, or
    • use the amounts we provide as estimates of the value of goods you have taken (updated annually), which are available in our taxation determination.

    Example

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

    See also:

    • 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
    • TD 2019/2 Income tax: value of goods taken from stock for private use for the 2018–19 income year
    Last modified: 20 Jun 2019QC 44442