Commonwealth Consolidated Acts

VETERANS' ENTITLEMENTS ACT 1986 - SECT 46B

             (1)  If:

                     (a)  a person carries on a business; and

                     (b)  the value of all the trading stock on hand at the end of a tax year is greater than the value of all the trading stock on hand at the beginning of that tax year;

the person's ordinary income for that tax year in the form of profits from the business is to include the amount of the difference in values.

             (2)  If:

                     (a)  a person carries on a business; and

                     (b)  the value of all the trading stock on hand at the end of a tax year is less than the value of all the trading stock on hand at the beginning of that tax year;

the person's ordinary income for that tax year in the form of profits from the business is to be reduced by the amount of the difference in values.

Note:          Different provisions apply when working out a person's ordinary income from a farm to find whether:

(a)           the person satisfies the farmers' income test for the purposes of Division 8 (see subparagraph 49J(3)(b)(ii) and paragraph 49J(3)(e)); or

(b)           the person satisfies the sugarcane farmers' income test for the purposes of Division 8A (see subparagraph 49Y(3)(b)(ii) and paragraph 49Y(3)(e)).