The Tax Office recognises that in many businesses, taking trading stock for the private use of the owners is a frequently-occurring common practice.
This occurs in such businesses as bakers, butchers, grocers, general stores, delis, restaurants and cafes etc.
Such private use of trading stock is a change of use, and the value of the stock consumed is added to taxable income.
To simplify tax return calculations, the Tax Office publishes a schedule of standard values (excluding GST) which can be used by the proprietors of such businesses.
Note: It is always open to taxpayers to keep and use records of actual consumption and values of Goods For Own Use as the basis for tax returns, and this would be necessary when the industry or circumstances are materially different to those covered by the Tax Determination.
Annual updates of Goods From Stock values
The Tax Office’s practice is to update and reissue the schedule as a Tax Determination annually, based on CPI statistics. The latest issue (at the time of writing) is below.
The Goods Taken From Stock For Own Use schedule Tax Determination TD 2017/9 applicable to the 2016-17 financial year was published on Wednesday, 5 April 2017.
The Goods Taken From Stock For Own Use schedule Tax Determination TD 2016/9 applicable to the 2015-16 financial year was published on Wednesday, 15 June 2016.
This page was last modified on 20 Sept 2017