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  • Using stock for private purposes

    If you take an item of 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 assessable income.

    There are alternate ways you can value this stock. You can:

    • 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).

    Example

    John runs a grocery store. At the end of each week, he gathers food from his grocery store for his family – 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 2018/10 Income tax: value of goods taken from stock for private use for the 2017–18 income year
    Last modified: 24 Jul 2018QC 44442