Introduction:
Business owners often use their trading stock for personal purposes, a common practice across various industries like butcheries, bakeries, cafes, and corner stores. To guide businesses, the Australian Taxation Office (ATO) has released 2023-24 income year values for goods taken from trading stock for private use.
Understanding the Basis:
The ATO determines these values based on the latest Household Expenditure Survey results from the Australian Bureau of Statistics, adjusting for Consumer Price Index (CPI) movements. This ensures accurate values reflecting market conditions for businesses.
ATO’s Latest Values:
For convenience, the ATO provides a table with expected values for different trading stock categories in the 2023-24 income year. Recognising business diversity, the ATO allows flexibility for greater or lesser values where appropriate.
Flexibility and Evidence:
The ATO encourages flexibility by acknowledging that individual circumstances may vary. Business owners can provide evidence for a lower value for goods used privately, allowing for a tailored approach.
Compliance:
Compliance with taxation regulations is crucial for business success. Business owners should familiarize themselves with ATO values and allocate them appropriately for goods used for personal purposes, promoting transparency and trust.
Conclusion:
The ATO’s guidelines empower business owners to navigate the use of trading stock for personal purposes. Understanding the basis, leveraging flexibility, and ensuring compliance with provided values allow businesses to adapt to their unique situations while meeting taxation regulations.
|
Type of business |
Amount ($) (ex GST) for adult/child >16 years | Amount ($) (ex GST) for child 4-16 years |
| Bakery | $1,520 | $760 |
| Butcher | $1,030 | $515 |
| Restaurant/cafe (licensed) | $5,160 | $2,090 |
| Restaurant/cafe(unlicensed) | $4,180 | $2,090 |
| Caterer | $4,410 | $2,205 |
| Delicatessen | $4,180 | $2,090 |
| Fruitier/ greengrocer | $1,040 | $520 |
| Takeaway food shop | $4,290 | $2,145 |
| Mixed business* | $5,200 | $2,600 |
*Including milk bar, general store, convenience store.
