The shops all locked up and you’re almost on your way home when you suddenly remember, I need milk! Do you make an extra stop on the way home or duck back inside your shop and grab one from the fridge before leaving?
A good majority of us will take the easy option and quickly grab the milk from our business stock. This is the main assumption in calculating Goods Own Use (GOU) or Using Trading Stock for Private Purposes and requires a taxpayer to account for the item of stock used as if they had sold it, by reducing inventory and recognising the cost as assessable income of the business.
The below schedule published by the Australian Tax Office provides total amounts the commissioner accepts as estimates for the value of goods taken from trading stock for private use:
|
TYPE OF BUSINESS |
AMOUNT (EXCLUDING GST) FOR ADULT/CHILD OVER 16 YEARS |
AMOUNT (EXCLUDING GST) FOR CHILD 4 to 16 YEARS OLD |
|
Bakery |
$1,350 |
$675 |
|
Butcher |
$900 |
$450 |
|
Restaurant/cafe (licensed) |
$4,640 |
$1,810 |
|
Restaurant/cafe (unlicensed) |
$3,620 |
$1,810 |
|
Caterer |
$3,830 |
$1,915 |
|
Delicatessen |
$3,620 |
$1,810 |
|
Fruiterer/greengrocer |
$930 |
$465 |
|
Takeaway food shop |
$3,670 |
$1,835 |
|
Mixed business (includes milk bar, general store and convenience store) |
$4,460 |
$2,230 |
Lesser values may be appropriate, but it is the taxpayer’s responsibility to justify their calculations.
This can be achieved through accurate record keeping including:
- The date the item was taken from stock
- The reason the item was taken
- A description of the item, and
- The cost.
So next time you’re dashing out the business door and you take some of your trading stock for personal use, don’t forget to record this use in your business records.
Author
Emma Russoniello
