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  • Valuing livestock



    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    Stock on hand

    You can choose to value livestock on hand at the end of the income year at cost, market selling value or replacement value. An additional option is available for certain horse breeding stock. You may change the basis of valuation year by year and different valuation bases may be adopted for individual livestock. At 1 July 2003, the value of livestock on hand should be the same as the value of your closing stock at 30 June 2003 that you used for your 2002-03 tax return.

    Oyster farmers

    Oyster farmers are required to account for oysters on hand as trading stock. This includes oysters held on sticks or in trays, or harvested and held ready for sale.

    If you are farming oysters for human consumption using the traditional stick farming method and have not previously accounted for your stock on hand, you may be eligible for a trading stock concession for 2001-02 only. This concession allows you to value your stock on hand at the beginning of 2001-02 based on the number of sticks you used to capture stock - $1.00 for wooden sticks or two-metre plastic slats, and $0.50 for one-metre plastic slats. This concession applies to your stock on hand that had not been harvested at the beginning of 2001-02. For more information, see the fact sheet Oyster farmers - stock on hand.

    If you are eligible for this concession but did not use it in your 2001-02 tax return, you may request an amendment of your 2001-02 assessment. The normal trading stock rules apply for 2002-03 and later income years.

    Stock killed for rations or exchanged for goods and services

    In these circumstances, you are treated as if you had disposed of the stock at its cost.

    Natural increase

    Natural increases of 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
    • 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 - phone the Business Infoline on 13 28 66 to confirm the appropriate cost. You must value a horse acquired by natural increase and included in livestock on hand at a cost not less than the insemination service fee attributable to acquiring the horse.

    If you are eligible and elect to enter the STS, you only need to value each item of trading stock on hand and account for changes in the value of your trading stock (including livestock) if the value of all your stock on hand at the start of the income year and a reasonable estimate of the value of all your stock on hand at the end of the income year varies by more than $5,000.

    Last modified: 30 Jun 2004QC 27519