Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 328-295 Value of trading stock on hand 328-295(1)
If you make a choice under section 328-285 for an income year, the * value of all your * trading stock on hand at the start of the income year is:
(a) the same amount as was taken into account under this Act at the end of the previous income year; or
(b) zero if no item of trading stock was taken into account under this Act at the end of the previous income year.
Note:
The amount taken into account at the end of the previous income year is worked out under either section 70-45 or subsection (2) of this section.
328-295(2)
If you make a choice under section 328-285 for an income year, this Act applies to you as if the * value of all your * trading stock on hand at the end of the year were equal to the value of all your trading stock on hand at the start of the year.
Note:
If you do not make a choice under section 328-285 , the value of trading stock on hand at the end of the year is worked out using section 70-45 .
Example:
Angela operates a riding school, and also sells riding gear. Her business is a small business entity for the 2008-09 income year and makes a choice under section 328-285 for that year.
At the start of the 2008-09 income year, the opening value of Angela ' s trading stock is $30,000. Using her reliable inventory system, she estimates the closing value to be $34,000.
The closing value for the 2008-09 income year, and the opening value for the 2009-10 income year, will be $30,000.
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