INCOME TAX ASSESSMENT ACT 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-45 - RULES FOR PARTICULAR INDUSTRIES AND OCCUPATIONS  

Division 328 - Small business entities  

Subdivision 328-E - Trading stock for small business entities  

Operative provisions

SECTION 328-295   Value of trading stock on hand  

328-295(1)  


If you make a choice under section 328-285 for an income year, the * value of all your * trading stock on hand at the start of the income year is:


(a) the same amount as was taken into account under this Act at the end of the previous income year; or


(b) zero if no item of trading stock was taken into account under this Act at the end of the previous income year.

Note:

The amount taken into account at the end of the previous income year is worked out under either section 70-45 or subsection (2) of this section.

328-295(2)  


If you make a choice under section 328-285 for an income year, this Act applies to you as if the * value of all your * trading stock on hand at the end of the year were equal to the value of all your trading stock on hand at the start of the year.
Note:

If you do not make a choice under section 328-285 , the value of trading stock on hand at the end of the year is worked out using section 70-45 .

Example:

Angela operates a riding school, and also sells riding gear. Her business is a small business entity for the 2008-09 income year and makes a choice under section 328-285 for that year.

At the start of the 2008-09 income year, the opening value of Angela ' s trading stock is $30,000. Using her reliable inventory system, she estimates the closing value to be $34,000.

The closing value for the 2008-09 income year, and the opening value for the 2009-10 income year, will be $30,000.


 

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