Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-25 - TRADING STOCK  

Division 70 - Trading stock  

Subdivision 70-C - Accounting for trading stock you hold at the start or end of the income year  

General rules

SECTION 70-35   You include the value of your trading stock in working out your assessable income and deductions  

70-35(1)    
If you carry on a *business, you compare:

(a) the *value of all your *trading stock on hand at the start of the income year; and

(b) the *value of all your trading stock on hand at the end of the income year.

Note:

You may not need to do this stocktaking if you are a small business entity: see Division 328 .

70-35(2)    
Your assessable income includes any excess of the *value at the end of the income year over the value at the start of the income year.

70-35(3)    
On the other hand, you can deduct any excess of the *value at the start of the income year over the value at the end of the income year.