Natural increases in stock during the year can be valued at cost, market selling value or replacement value.
Cost is whichever of the following you elect:
- actual cost of the animal or
- the cost prescribed by the regulations: (cattle, horses and deer $20; pigs $12; emus $8; goats and sheep $4; poultry 35 cents).
If your business involves breeding exotic animals-for example, ostriches or alpacas-ring the ATO to confirm the appropriate cost. You must value a horse acquired by natural increase and included in livestock on hand at a cost price not less than the insemination service fees attributable to acquiring the horse.