Value of goods taken from stock for private use for 2010-11

Jun 03, 2011

 

If you run a food service business such as a bakery, butcher, cafe, restaurant or catering and you take goods to feed your family for private use, the ATO requires you to deduct the private usage from your cost of goods sold.

To make it easier for business owners, each year the ATO publishes a table showing the standard amount each you can elect to use instead of keeping a detailed log on what you have taken.

On 18 May 2011, the ATO issued Taxation Determination TD 2011/11 entitled "Income tax: value of goods taken from stock for private use for the 2010-11 income year".

The Schedule for the value of goods taken from trading stock for private use in the 2010-11 income year is:

                             

TYPE OF BUSINESS

AMOUNT (EXCLUDING GST) FOR ADULT/CHILD OVER 16 YEARS $

AMOUNT (EXCLUDING GST) FOR CHILD 4-16 YEARS $

Bakery

1,140

570

Butcher

770

385

Restaurant/cafe (licensed)

3,950

1,565

Restaurant/cafe (unlicensed)

3,130

1,565

Caterer

3,390

1,695

Delicatessen

3,130

1,565

Fruiterer/greengrocer

820

410

Takeaway food shop

2,970

1,485

Mixed business (includes milk bar, general store and convenience store)

3,750

1,875



 

 

Comments

"Is there a duty for the business owner to prove that they have not taken goods for personal use."

By: Barb on Aug 16, 2012 2:14PM

"The ATO in their tax ruling sums up the answer best: "In the context of self assessment, each taxpayer should be able to demonstrate that the value attributed to goods taken from stock for private use was fair and reasonable. Taxpayers should always have regard to their own circumstances when determining the appropriate value." "

By: Mr Taxman on Aug 24, 2012 12:35AM

"What are the rates for year 2011-2012? Thanks"

By: Emily on Aug 29, 2012 7:24AM

"The ATO have't updated the rates for 2011-12 as far as I can see. Quite surprising."

By: Mr Taxman on Aug 29, 2012 9:02PM

"I read your article, great stuff. You mention to allocate the goods taken for private use to COGS. Is it the same when staff take meals from a take away shop for private use? I thought i may need to allocate it to other income?"

By: Estelle on Sep 05, 2012 8:48AM

"Thoughtful question Estelle - however, it is not the same if staff have meals as the owner. Poses the question if there are any potential fringe benefits being provided to employees though & would depend on the $ value of the goods provided to them as they might be "minor" in nature."

By: Mr Taxman on Sep 09, 2012 12:24PM

"The amounts are in minor category, eg not more than $10 a week per employee. Due to being minor would it be ok to take it off COGS?"

By: Estelle on Sep 18, 2012 3:30AM

"Don't see any reason why you need to take it off COGS. There may be some FBT implications as more than $300 per year per employee. However, goods you provide to an employee is an exempt benefit if the goods are both provided and consumed on your premises on a working day (if you are a company, the premises may be those of a related company). For example, there is no FBT on bread given to bakery employees for consumption at work."

By: Mr Taxman on Sep 19, 2012 8:41AM

"Thanks for you reply, appreciate it."

By: Estelle on Sep 23, 2012 11:09PM

"Hi, What is the GST effect of the goods for own use adjustment?"

By: Jacinta on Jan 31, 2013 10:56PM

"You would need to add back the GST if the goods have attracted the tax in the first instance eg none for fresh fruit."

By: Mr Taxman on Feb 01, 2013 12:42AM

"For Restaurants, as the purchases are GST free..but processed food sales include GST. The restaurant owners will have to add GST. For example, from above table, licensed Restaurant Owner will have to pay $3,950 + $395 = $4,345 for one adult. Please confirm your understanding"

By: Mukesh on Oct 01, 2013 8:37AM

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