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Trading Stock at 30 June 2027: Stocktake or Estimate?

Updated 17 October 2026 · General information · 3 min read

General information only, not tax, legal or financial advice. We are not the ATO. Check ato.gov.au or ask a registered tax agent. Last checked: 17 October 2026. Dates for 2027 marked expected. Examples use made-up numbers. This page contains no affiliate links.

Short answer: The ATO says you can use the simplified trading stock rules if you are a small business (aggregated turnover under $10 million, or a business that would be small except turnover is under $50 million for income years starting on or after 1 July 2021) and you estimate that the value of your trading stock changed by $5,000 or less over the year. You then don't have to do a formal stocktake or account for the change.

Rules from the ATO pages (simplified rules page last updated 27 May 2026)

• Estimate: reasonable if you keep a constant level of stock and have a good idea of its value, or your levels fluctuate but you can estimate from purchase records. It must be made in good faith, following a rational process, and you must be able to explain and prove it. Factors include type of stock, storage locations, valuation method, past years, and accuracy of sales, purchase and inventory records.
• Opening value: the value in last year's return; $0 if you had no trading stock last year.
• If you don't account for change: closing value is treated as equal to opening.
• More than $5,000: use the general rules. An increase in value over the year is assessable income; a decrease is an allowable deduction.
• Choice to stocktake: allowed even if the change is $5,000 or less, for example if values are rising and you prefer small increases in income, or falling and you want the deduction now. If you choose, include the change in assessable income and apply the general rules.
• If you claim other expenses when you pay rather than when incurred, do the same for trading stock.

ATO example (summarised)

Electrician Colin valued stock at $6,800 last year, expects similar quantities and about 15% higher prices: $6,800 × 1.15 = $7,820, a difference under $5,000, so no stocktake.

General rules (ATO page updated 7 May 2025, search excerpt)

End-of-year stocktake of all trading stock at the start and end of the year; closing value is usually the next year's opening value.

For 30 June 2027

Decide before year-end whether you will estimate or count. Record how you estimated. See the EOFY checklist, sole trader deductions and key dates.

FAQ

Do consumables count?

The ATO trading-stock overview excludes consumables used in manufacturing, spare parts for repairs and some other items (search excerpt).

Is this GST advice?

No.

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