Using trading stock for private purposes

If you take an item of your business's trading stock for your private use, you need to:

  • account for it as if you had sold it
  • include the value of the item in your business's assessable income.

There are 2 ways you can value this stock. You can either:

  • keep records of the actual value of goods you take from your trading stock for your own private use and report that amount, or
  • use the amounts the ATO provides as estimates of the value of goods you’ve taken (updated annually), which are available in the ATO’s taxation determination.


John runs a grocery store. At the end of each week, he takes food from his grocery store for his wife and 3 children.

John records the value of these goods and reports the amount as income in his business accounts. His records include:

  • the date
  • a description of what was taken
  • the reason stock was taken (personal use)
  • the cost or market value of the item (excluding GST).

Claiming small business tax deductions

Steps Progress

What are deductions and what can I claim?

5 mins

Accounting for private use of assets

9 mins

Expenses you can never deduct

1 mins

Expenses you can deduct over time

10 mins

Stock and asset records

5 mins

Expenses you can deduct immediately

5 mins

Other deductions records

1 mins

Motor vehicle deductions

4 mins

Motor vehicle deductions records

2 mins

Related courses

1 mins

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