Simplified trading stock rules for small businesses

Overview

Simplified Stock Trading Rules provide eligible small businesses with the option of using simplified trading stock rules at end of financial year stocktake.

Businesses may use the simplified rules if there is a difference of $5000 or less between:

• the value of your stock on hand at the start of the income year
• a reasonable estimate of the value of your stock on hand at the end of that year

The $5000 threshold applies to both increases and decreases in the value of your trading stock.

Under the simplified rules you:

• do not have to do a stocktake at the end of the income year
• do not have to account for any changes in the value of your trading stock

Check if you can apply

To be eligible, you must:

• be a small business as recognised by the ATO
• meet the circumstances required

To find out more, visit Small Business Entity Concessions – Eligibility.