This concession allows you to estimate the value of your trading stock at the end of the financial year to report in your tax return. You will need to record how you estimated the value of your stock, but you don't need to notify us that you have chosen to use an estimate.
You can choose not to conduct a stocktake (and account for changes in the value of your trading stock) if there is a difference of $5000 or less between:
- the value of your stock at the start of the income year.
- a reasonable estimate of the value of your stock at the end of the year.
If you choose not to use an estimate, you will need to conduct a stocktake and account for the changes in the value of your stock.