Taxation Laws Amendment Act (No. 4) 2003 (66 of 2003)

Schedule 3   Non-assessable non-exempt income

Income Tax Assessment Act 1997

50   Subsection 6-15(2) (note)

Repeal the note, substitute:

Note: If an amount is exempt income, there are other consequences besides it being exempt from income tax. For example:

· the amount may be taken into account in working out the amount of a tax loss (see section 36-10);

· you cannot deduct as a general deduction a loss or outgoing incurred in deriving the amount (see Division 8);

· capital gains and losses on assets used solely to produce exempt income are disregarded (see section 118-12).