• Valuing livestock

    Attention

    Warning:

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

    End of attention

    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. The value of your opening livestock on hand at 1 July 2013 should be the same as the value of your closing stock at 30 June 2013 that you used for your 2012–13 tax return.

    Small business entities

    You do not have to value each item of trading stock (including livestock) on hand at the end of the 2014 income year or account for changes in the value of your trading stock for the 2014 income year if:

    • you are an eligible small business entity for the 2014 income year
    • you choose to access the simplified trading stock rules
    • the difference between the value of all trading stock on hand at the start of the income year and the value you reasonably estimate of all your trading stock on hand at the end of the income year is less than $5,000.

    You can, if you prefer, still conduct a stocktake and account for changes in the value of trading stock for the 2014 income year even if the difference is less than $5,000.

    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.

    See also:

    Bees

    Entities carrying on a business of beekeeping for the purpose of honey production are required to account for bees on hand as trading stock.

    See also:

    Goods taken from stock for private use

    If you take goods from stock for your own use, or for the use of your family members, you are required to account for the goods as if the stock had been disposed of at its cost.

    Natural increase

    The cost of an animal you hold as livestock that you acquired by natural increase is whichever of these you elect either:

    • actual cost of the animal
    • 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 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.

      Last modified: 04 Mar 2016QC 39974