Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 35 - Deferral of losses from non-commercial business activities  

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History

Div 35 inserted by No 90 of 2000.

Operative provisions  

SECTION 35-5   Object  

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35-5(1)    
The object of this Division is to improve the integrity of the taxation system by:

(a) preventing losses from non-commercial activities that are carried on as ^* businesses by individuals (alone or in partnership) being offset against other assessable income; and

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(b) preventing pre-business capital expenditure and post-business capital expenditure by individuals (alone or in partnership) in relation to non-commercial activities being deductible under section 40-880 (business related costs);

unless certain exceptions apply.

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History

S 35-5(1) amended by No 70 of 2015, s 3 and Sch 6 item 18, by substituting " carried on " for " *carried on " in para (a), effective 25 June 2015.

35-5(2)    

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This Division is not intended to apply to activities that do not constitute carrying on a ^* business (for example, the receipt of income from passive investments).

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History

S 35-5(2) amended by No 70 of 2015, s 3 and Sch 6 item 19, by substituting " carrying on " for " *carrying on " , effective 25 June 2015.

S 35-5 substituted by No 32 of 2006, s 3 and Sch 2 item 3, applicable to expenditure incurred on or after 1 July 2005. S 35-5 formerly read:

SECTION 35-5 Object  
35-5(1)
The object of this Division is to improve the integrity of the taxation system by preventing losses from non-commercial activities that are carried on as ^* businesses by individuals (alone or in partnership) being offset against other assessable income.

35-5(2)
This Division is not intended to apply to activities that do not constitute carrying on a ^* business, for example, the receipt of income from passive investments.

S 35-5 inserted by No 90 of 2000.

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