The ATO knows that many business owners naturally help themselves to their trading stock and use it for their own purposes.
This common practice can occur in businesses such as butchers, bakers, corner stores, cafes and more.
It regularly issues guidance for business owners on the value it expects will be allocated to goods taken from trading stock for private use. The table below shows these values for the 2015-16 income year.
| Type of business | Amount (excluding GST) for adult/child over 16 years $ |
Amount (excluding GST) for child 4-16 years $ |
| Bakery | 1,350 | 675 |
| Butcher | 800 | 400 |
| Restaurant/cafe (licensed) | 4,580 | 1,750 |
| Restaurant/cafe (unlicensed) | 3,500 | 1,750 |
| Caterer | 3,790 | 1,895 |
| Delicatessen | 3,500 | 1,750 |
| Fruiterer/greengrocer | 790 | 395 |
| Takeaway food shop | 3,410 | 1,705 |
| Mixed business (includes milk bar, general store and convenience store) | 4,230 | 2,115 |
The basis for determining values is the latest Household Expenditure Survey results issued by the Australian Bureau of Statistics, adjusted for CPI movements for each category.
Note that the ATO recognises that greater or lesser values may be appropriate in particular cases, and where you are able to provide evidence of a lower value, this should be used.
More information? To find out more, give us a call on 1300 023 782 or email team@cdrta.com.au.
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Craig is the principal consultant of C&D Restructure and Taxation Advisory and has been working in the industry since 1999. Having established C&D Commercial Partners in 2015 the precursor to the current business.
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