Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 1074

  (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.