Non-commercial losses: Commissioner's discretion

Introduction

If you have a net loss from a business activity you run as an individual, either as a sole trader or in partnership, the non-commercial loss rules apply. These rules determine whether you can use your business loss to offset income from other sources.

Changes to the operation of the non-commercial loss rules apply for the 2009-10 and later income years. The key changes include: The introduction of an income requirement to further restrict the circumstances where a business loss can offset other income. You will meet the income requirement if your income for non-commercial loss purposes is less than $250,000. A new exception for business losses solely caused by deductions claimed for the small business and general business tax break. A new Commissioner's discretion for individuals who do not meet the income requirement but whose business activity is commercially viable. For more information, see Guide to non-commercial losses.

Sections within Introduction

• Other products in this series
• Claiming a business loss
• Income requirement