Goods Taken From Trading Stock for Private Use Explained

Understanding goods taken from trading stock for private use

Many small business owners occasionally take goods from their business trading stock for personal or family use. This commonly occurs in industries such as hospitality, food retail and convenience stores.

Under Australian tax law, goods taken from trading stock for private use generally need to be accounted for as if they had been sold. The value of those goods must usually be included in the business’s assessable income.

To simplify record-keeping, the Australian Taxation Office (ATO) publishes annual benchmark amounts that eligible businesses can use as reasonable estimates of the value of goods taken from stock for private use.

These annual benchmark amounts are commonly referred to as “goods own use” (GOU) amounts.

The ATO’s updated private use stock values for 2025–26

The ATO released Taxation Determination TD 2025/7, which updates the amounts the Commissioner will accept as estimates of the value of goods taken from trading stock for private use for the 2025–26 income year.

The following GST-exclusive amounts apply for the 2025–26 income year:

The ATO accepts these amounts as reasonable estimates for eligible businesses operating within these industries for the 2025–26 income year.

Record-keeping obligations still apply

Even where you use the ATO’s published benchmark amounts, business owners should still maintain appropriate business records.

The ATO states that taxpayers should be able to demonstrate that the value attributed to goods taken from trading stock for private use is fair and reasonable based on their circumstances.

If you maintain your own records of stock taken for private use, those records should generally include:
 

• the date goods were taken
• a description of the goods
• the reason the stock was taken
• the cost or market value of the item, excluding GST.

Lower or higher values may apply in some situations

The ATO recognises that the published benchmark amounts may not be appropriate for every business.

If the actual value of goods taken from stock for private use is lower than the published benchmark amount and you can justify the lower value, the lower amount may be used.

Similarly, where the value of goods taken for private use would be significantly higher than the benchmark amount, the actual amount should generally be used instead.

Accurate trading stock reporting remains important

Correctly accounting for trading stock and private use adjustments is an important part of preparing accurate business tax returns.

Incorrect reporting of trading stock may affect:
 

• business income calculations
• taxable profit
• GST reporting
• year-end tax obligations.

This is particularly important for hospitality, food retail and convenience businesses where stock is regularly consumed or used privately.

Some eligible small businesses may also qualify for simplified trading stock rules depending on turnover thresholds and changes in stock value during the income year.

How H&R Block can help

Managing trading stock adjustments and private use calculations can become complex, particularly for small business owners in hospitality and retail industries.

H&R Block’s Tax Experts can help you correctly account for trading stock, prepare your business tax return and ensure your records align with current ATO requirements.