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 stock take.

Businesses may use the simplified rules if there is a difference of $5,000 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 $5,000 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 stock take 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