2026 ATO Values: Goods Taken From Stock for Own Use by Business Type

Key Takeaways

• The ATO has released TD 2025/7 with updated values for goods taken from stock for personal use, with amounts ranging from $1,070 (butchers) to $5,640 (mixed businesses) per adult annually
• GST-registered businesses must add 10% to these values when accounting for goods taken for private use, as they're treated as taxable sales
• Business owners can choose between using the ATO's simplified schedule or maintaining detailed records of actual consumption
• Mixed businesses like milk bars and convenience stores face the highest values at $5,640 per adult, while butcher shops have the lowest at $1,070 per adult
• The ATO's methodology relies on Australian Bureau of Statistics household expenditure data, adjusted annually for Consumer Price Index movements

Small business owners who take goods from their trading stock for personal use face a critical tax obligation that many overlook. Whether it's a baker taking home fresh bread, a butcher providing meat for family dinners, or a café owner enjoying their own coffee, these transactions must be properly accounted for in tax returns.

2025-26 Official ATO Values Now Released

The Australian Taxation Office has officially published Tax Determination TD 2025/7 on 22 October 2025, establishing the estimated values for goods taken from trading stock for personal use during the 2025-26 income year. These values represent the amount that must be included in assessable income when business owners withdraw stock for private consumption.

The determination applies to sole traders and partnerships operating specific types of businesses where detailed record-keeping for personal stock usage proves difficult or impractical. Taxrates.info provides a detailed breakdown of these values to help business owners understand their obligations and calculate their annual requirements.

Business owners must treat goods taken for personal use as if they were sold at market value, with this amount forming part of their assessable income. The ATO's annual schedule offers a simplified alternative to maintaining detailed consumption records throughout the year.

Complete Business Type Breakdown

1. Bakery Operations ($1,620 per adult annually)

Bakeries face relatively modest values compared to other food businesses, with the 2025-26 determination setting $1,620 per adult and $810 per child aged 4-16. This represents an increase from the previous year's $1,580 per adult. The lower values reflect the specific nature of baked goods and typical household consumption patterns for bread, pastries, and related products.

2. Butcher Shops ($1,070 per adult annually)

Butcher shops have the lowest values in the schedule at $1,070 per adult and $535 per child aged 4-16. This $30 increase from 2024-25 reflects the ATO's Consumer Price Index adjustments. The relatively lower amount acknowledges that while meat represents a significant household expense, the volume taken by butcher shop owners for personal use typically remains modest compared to mixed retail operations.

3. Licensed vs Unlicensed Restaurants and Cafés

Licensed restaurants and cafés face the second-highest values at $5,460 per adult and $2,210 per child, while unlicensed establishments are valued at $4,420 per adult and $2,210 per child. The $1,040 difference between licensed and unlicensed venues reflects the additional cost of alcoholic beverages that owners might consume. Both categories have increased from their 2024-25 levels of $5,310 and $4,300 respectively.

4. Specialty Food Businesses (Caterers, Delis, Takeaways)

Caterers are valued at $4,650 per adult and $2,325 per child, while delicatessens match unlicensed restaurants at $4,420 per adult and $2,210 per child. Takeaway food shops slightly exceed caterers at $4,680 per adult and $2,340 per child. These values reflect the diverse range of prepared foods and ingredients available in these business types. Fruiterer and greengrocer operations face significantly lower values at $1,140 per adult and $570 per child, recognising the seasonal nature and specific consumption patterns of fresh produce.

5. Mixed Businesses Have Highest Values

Mixed businesses, including milk bars, general stores, and convenience stores, face the highest values in the schedule at $5,640 per adult and $2,820 per child. This $220 increase from 2024-25 reflects the wide variety of goods available in these establishments, from food and beverages to household items. The ATO recognises that owners of these businesses have access to the broadest range of products for personal consumption.

GST and Tax Implications

TD 2025/7 Values Exclude GST - Registered Businesses Must Add 10%

All values in the Tax Determination are GST-exclusive. GST-registered businesses must treat goods taken for personal use as taxable sales to themselves, requiring the addition of 10% GST unless the goods are GST-free or input-taxed. This creates a significant compliance consideration, as the GST component must be reported in the Business Activity Statement for the relevant period.

Journal Entry Examples

For a butcher with a spouse and two children using 2025-26 values, the annual calculation totals $3,210 excluding GST. A non-GST registered business would record: Debit Drawings $3,210, Credit Sales (or Inventory) $3,210. GST-registered businesses require additional entries: Debit Drawings $3,531, Credit Sales $3,210, Credit GST Payable $321. This GST amount must be included in BAS reporting under code 1A (GST on sales).

Alternative Record-Keeping Options

When ATO Schedule Values Don't Apply

The ATO schedule values are optional. Business owners may choose to maintain detailed records if their actual consumption differs significantly from the published amounts. This becomes particularly relevant when actual usage is substantially lower than the schedule values, allowing businesses to declare smaller amounts.

Companies and trusts cannot use the schedule values. When company or trust owners take stock for personal use, it's treated as a sale at market value

Required Record Details for Manual Tracking

Businesses choosing to track actual consumption must maintain records including the date, description of goods taken, reason for taking the stock, and cost or market value excluding GST. For example, a grocery store owner taking food for family use should record each instance with these details. While more burdensome than using the schedule, this approach provides precision and may result in lower taxable amounts for businesses with minimal personal usage.

Children Under 4 Not Covered in TD 2025/7

The Tax Determination only provides values for adults (including children over 16) and children aged 4-16. The determination does not provide specific guidance for children under 4, though business owners should consider whether goods consumed by younger children require accounting based on their specific circumstances and materiality.

ATO's Methodology Behind the Numbers

Household Expenditure Survey Data Source

The ATO derives schedule values from Australian Bureau of Statistics Household Expenditure Survey results, which track community spending patterns across various categories. The selected business types share common characteristics: they involve transformation processes of trading stock, handle numerous small or low-value items, operate high-turnover cash businesses, and aren't suited to detailed inventory tracking systems.

The methodology considers the types of stock items likely present in each business category and estimates reasonable private consumption levels based on broader community spending patterns. This approach provides a practical solution for businesses where tracking individual consumption events would be administratively burdensome.

CPI Adjustments and Annual Updates

Values are adjusted annually using Consumer Price Index movements to reflect changing costs and consumption patterns. The 2025-26 increases across all categories demonstrate the ongoing impact of inflation on household expenditure. The ATO's practice of annual updates ensures the schedule remains relevant to current economic conditions while maintaining simplicity for small business compliance.

Use TD 2025/7 Values or Keep Detailed Records - Your Choice

Australian small business owners have flexibility in how they account for goods taken from stock for personal use. The ATO's annual schedule provides a simplified compliance pathway, particularly valuable for businesses with multiple small transactions where detailed tracking proves impractical. However, businesses with minimal personal usage or those able to maintain accurate records may benefit from tracking actual consumption.

The choice between methods should consider administrative burden, actual usage patterns, and the materiality of the amounts involved. Regardless of the chosen approach, proper documentation and compliance with GST obligations remain necessary. Professional advice can help determine the most appropriate method for specific business circumstances.

For detailed tax rate information and guidance on Australian taxation obligations, visit Taxrates.info, your trusted source for current tax rates and related information.

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