Document ID: chunk:federal_register_of_legislation:C2004A00846:clause:1_1:p14
Version: federal_register_of_legislation:C2004A00846
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 14/21)
Character Range: 33252–35872

85‑10 and 86‑60, as an *STS taxpayer you can deduct amounts for *depreciating assets under this Subdivision.

 (2) However, you cannot deduct an amount for a *car under this Subdivision if, had you not chosen to be an *STS taxpayer, sections 86‑60 and 86‑70 would have prevented you deducting an amount for it.

Subdivision 328‑E—Trading stock for STS taxpayers

Guide to Subdivision 328‑E

328‑280  What this Subdivision is about

      STS taxpayers do not need to account for their trading stock in some circumstances. This Subdivision modifies the rules in Division 70 about trading stock for STS taxpayers.

Table of sections

Operative provisions

328‑285 Trading stock for STS taxpayers
328‑290 Adjustments in certain cases
328‑295 Value of trading stock on hand

[This is the end of the Guide.]

Operative provisions

328‑285  Trading stock for STS taxpayers

 (1) You do not have to account for changes in the *value of your *trading stock for an income year if:
 (a) you are an *STS taxpayer for that year; and
 (b) the difference between the value of all your trading stock on hand at the start of that year and the value you reasonably estimate of all your trading stock on hand at the end of that year is not more than $5,000.

Note 1: As a result, sections 70‑35 and 70‑45 (about comparing the value of each item of trading stock on hand at the start and end of an income year) will not apply to you for the income year.

Note 2: When making a reasonable estimate of the value of trading stock on hand:
                  *   special valuation rules may be used, for example, obsolete stock, natural increase of livestock, horse breeding stock; and
                  *   the estimated value disregards an amount equal to the amount of input tax credits (if any) to which you would be entitled for an item if the acquisition of the item had been solely for a creditable purpose: see subsection 70‑45(1A).

Exception: choice to account for trading stock

 (2) However, you can choose to account for changes in the *value of your *trading stock for an income year.

Note: If you make this choice, you will have to do a stocktake and account for the change in the value of all your trading stock: see Subdivision 70‑C.

328‑290  Adjustments in certain cases

  If you are an *STS taxpayer for an income year and you account for changes in the *value of your *trading stock for the income year, you must:
 (a) value each item of your trading stock on hand at the end of the income year in accordance with section 70‑45; and
 (b) take into account the *value of all your *trading stock, in accordance with