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, wine shops and more.
The ATO 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 2019-20 income year, taken from Taxation Determination TD 2020/1.
|Type of business||Amount (excluding GST) for adult/child under 16 years||Amount (excluding GST) for child 4 to 16 years old|
|Takeaway food shop||$3,440||$1,720|
|Mixed business (includes milk bar, general store and convenience store)||$4,260||$2,130|
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.
The ABS collects at varying intervals detailed information about the expenditure, income, net worth and other characteristics of households resident in private dwellings throughout Australia. Information is collected during personal interviews and from diaries in which survey participants have recorded all personal expenditure over a two-week period. Interviews and diary keeping are spread over the financial year of collection.
At the “fine” level of expenditure, the survey details household expenditure in over 700 categories of items across a range of household composition groups.3 It is considered that these survey results provide reasonable and statistically valid estimates as to the community’s level of spending on a wide range of items.
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.