Income Tax Assessment Act 1997
Trading stock includes:
(a) anything produced, manufactured or acquired that is held for purposes of manufacture, sale or exchange in the ordinary course of a *business; and
(b) *live stock.
Trading stock does not include:
(a) a * Division 230 financial arrangement; or
(b) a * CGT asset covered by section 275-105 that:
(i) is owned by a * complying superannuation fund, a * complying approved deposit fund or a * pooled superannuation trust; or
(ii) is a * complying superannuation asset of a * life insurance company.
Shares in a PDF are not trading stock. See section 124ZO of the Income Tax Assessment Act 1936 .
If a company becomes a PDF, its shares are taken not to have been trading stock before it became a PDF. See section 124ZQ of the Income Tax Assessment Act 1936 .