Section 46B — Veterans' Entitlements Act 1986: Ordinary income from a business—treatment of trading stock

(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.