Simplified trading stock rules for small businesses
Provides eligible small businesses the option to use simplified trading stock rules at the end of the financial year stocktake.
If the difference between the value of opening stock and a reasonable estimate of closing stock is $5,000 or less, businesses may not have to perform a year-end stocktake or account for changes in trading stock value.
To be eligible, you must:
- be a small business as recognised by the ATO
- meet the circumstances required
Businesses may use the simplified rules if there is a difference of $5,000 or less between:
- the value of your stock on hand at the start of the income year
- a reasonable estimate of the value of your stock on hand at the end of that year
The $5,000 threshold applies to both increases and decreases in the value of your trading stock.
Under the simplified rules, you do not have to do a stock take at the end of the income year and you do not have to account for any changes in the value of your trading stock.
Get a personalised eligibility check — your match score, which criteria you meet, and what to watch out for.
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Last updated: 12 February 2026