Document ID: chunk:federal_register_of_legislation:C2004A00846:clause:1_1:p15
Version: federal_register_of_legislation:C2004A00846
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 15/21)
Character Range: 35657–38132

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 section 70‑35, in working out your assessable income and deductions.

Note 1: You account for changes in the value of your trading stock for the income year if:
                  *   you choose to do so; or
                  *   the estimated difference between the value of your trading stock at the start and at the end of that year is more than $5,000.

Note 2: Section 70‑35 includes in assessable income any excess of the value of trading stock at the end of the income year over the value at the start of the income year, and allows a deduction for any excess of the value at the start of the income year over the value at the end of the income year.

328‑295  Value of trading stock on hand

 (1) If you are an *STS taxpayer 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.

 (2) If subsection 328‑285(1) applies to you for an income year and you have not made a choice under subsection 328‑285(2) for that 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 subsection 328‑285(1) does not apply, 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. She is an STS taxpayer.

 At the start of the 2003‑04 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 2003‑04 income year, and the opening value for the 2004‑05 income year, will be $30,000.

Subdivision 328‑F—Entities eligible to be STS taxpayers

Guide to Subdivision 328‑F

328‑360  What this Subdivision is about

      This Subdivision explains that you can choose to be an STS