Simplified Trading Stock Rules

At a glance

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Provides eligible small businesses with the option of using simplified trading stock rules at the end of financial year stocktake.

Who can apply:

At a minimum, you must:

  • be a small business entity as defined by the ATO

Other eligibility requirements may apply.

Contact information:

13 28 66

General enquiry form

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

Eligibility criteria

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.

How to apply

There is no application process required. This is an option you may choose to use during your end of financial year stocktake if you meet the requirements.

Find out more at Simplified Stock Trading Rules.

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