Income Tax Assessment Act 1997
View history note
Hide history noteSECTION 70-45 Value of trading stock at end of income year 70-45(1)
You must elect to value each item of *trading stock on hand at the end of an income year at:
(a) its *cost; or
(b) its market selling value; or
(c) its replacement value.
Note:
An item ' s market selling value at a particular time may not be the same as its market value.
70-45(1A)
In working out the *cost, market selling value or replacement value of an item of *trading stock (other than an item the *supply of which cannot be a *taxable supply) at the end of an income year, disregard an amount equal to the amount of the *input tax credit (if any) to which you would be entitled if:
(a) you had *acquired the item at that time; and
(b) the acquisition had been solely for a *creditable purpose; and
Note:
Some assets, such as shares, cannot be the subject of a taxable supply.
70-45(2)
The rest of this Subdivision deals with cases where the normal operation of this section is modified, or where a different valuation method may or must be used. The table sets out other cases where that happens because of provisions outside this Subdivision.
| Rules about the value of trading stock | ||
| Item | For this situation: | See: |
| 1 | (Repealed by No 23 of 2005) | |
| . | ||
| 2 | In working out the attributable income of a non-resident trust estate, trading stock is taken to be valued at cost. | Section 102AAY of the Income Tax Assessment Act 1936 |
| . | ||
| 3 | In working out the attributable income of a controlled foreign corporation, the corporation must value at cost. | Section 397 of the Income Tax Assessment Act 1936 |
| . | ||
| 4 | Some anti-avoidance provisions reduce the amount that is taken to be the cost of an item of trading stock. | Subsections 52A(7), 82KH(1N), 82KL(6) and 100A(6B) of the Income Tax Assessment Act 1936 |
| . | ||
| 5 | The value of the item at the end of an income year may be the same as at the start of the year for a small business entity | Subdivision 328-E of this Act |
| 6 | The hybrid mismatch rules disallow an amount of a deduction for an outgoing incurred in connection with acquiring an item of *trading stock | Section 832-60 of this Act |
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