Tax accounting and livestock in Australia
Published Date: 12 Apr 2024
This article provides a comprehensive examination of the tax accounting treatment of livestock in Australian primary production businesses. Contrary to the established practice of categorising all livestock as trading stock, the authors propose an alternative approach, advocating for the recognition of stud or breeding livestock as capital assets. Through a thorough investigation of historical legal cases, particularly FCT v Wade, and legislative changes such as the repeal of s 17 of the Income Tax Assessment Act 1922, the authors challenge the current viewpoint upheld by the ATO since 1951. They suggest practical measures for tax preparers to capitalise breeding animals, enabling them to benefit from CGT concessions. Despite potential challenges in record-keeping and expense deduction, the study emphasises the financial advantages and fairness in aligning tax treatment with the true nature of livestock in primary production businesses.
Sorry, this is subscriber only content.
To gain access to this material and much more - Subscribe Now.
(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).
Already a Subscriber? Login now
Already a Subscriber? Login now
Details
- Published By: Lex Fullarton, Dale Pinto CTA-Life
- Published On:12 Apr 2024
The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.
Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.
The Tax Institute
(ABN 45 008 392 372 (PRV14016))
("TTI")
The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009.
Copyright Statement
All materials provided on this site are protected by copyright and are owned by or licensed to TTI.
Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.
Tags
Share this page