| Commissioner's discretion to allow a loss |
| If you don't meet the income requirement or business tests, there are some circumstances where you can ask us to exercise a discretion to allow you to claim the loss. |
| Deferring a non-commercial loss |
| If there is no way to offset the loss, you defer the loss and may be able to claim it in a future year, either by passing one of the tests or making a profit in the business. |
| Example of deferring and claiming losses |
| This detailed example shows how, over five years, a person with business and employment income defers and claims business losses. |
| Exceptions for artists, primary producers and tax break deductions |
| There are exceptions to the non-commercial loss rules for primary producers, professional arts business and, for the 2009-10 and 2010-11 income years, losses solely as a result of purchases made under the business tax break concessions. |
| Income requirement and business tests |
| You can offset a loss from your business against your other income if you meet the income requirement - broadly, that your income is less than $250,000 - and your business passes one of four business tests. |
| Non-commercial losses - important recent changes |
| Information about changes to the operation of the non-commercial loss rules. |
| Non-commercial losses and product rulings |
| Many participants in arrangements, who are individuals, may be affected by the provisions of division 35 on the deductibility of losses from the carrying on of a business activity. |
| Non-commercial losses overview |
| Find out if you can offset a business loss against other income, and what happens to the business loss if you can't. |
| Non-commercial losses: assessable income test |
| The assessable income generated by your business activity may determine if you can offset a loss from the activity against your income from other sources. NAT 3383. Information current from 2009-10 onwards. |
| Non-commercial losses: Commissioner's discretion |
| You will be able to offset a loss if your business activity passes one of four tests, or if the Commissioner of Taxation decides to exercise a discretion. |
| Non-commercial losses: deferral of losses |
| If you are not able to deduct your business activity loss in the current year because of the non-commercial loss rules, you will need to defer your loss for use in a later year. Information current from 2009-10 onwards. |
| Non-commercial losses: evidentiary checklist |
| This checklist must be attached to your Application for a private ruling on the exercise of the Commissioner's discretion for non-commercial losses. |
| Non-commercial losses: exception for primary producers and professional arts businesses |
| An exception to the non-commercial loss rules allows net losses from certain primary production or professional arts business activities to be claimed in the year incurred. Information current for 2009-10 and later years. |
| Non-commercial losses: income requirement |
| You must first meet the income requirement before you can use one of the four tests to pass the non-commercial loss rules. If you subsequently pass one of the four tests, you can deduct your loss. Information current for 2009-10 and later income years. |
| Non-commercial losses: other assets test |
| The value of certain business assets may determine if you can offset a loss from a business activity against your income from other sources. NAT 3380. Information current from 2009-10 onwards. |
| Non-commercial losses: partnerships |
| If you are undertaking a business activity in partnership there are special rules to determine whether you, as an individual, pass any of the tests relating to non-commercial losses. Information current for 2009-10 and later years. |
| Non-commercial losses: profits test |
| The profitability of your business activity may determine if you can offset a loss from the activity against your income from other sources. Information current from 2009-10 onwards. |
| Non-commercial losses: real property test |
| The value of real property assets may determine whether you can deduct a loss from a business activity against your income from other sources. Information current for 2009-10 and later years. |
| Non-commercial losses: rulings and determinations |
| Links to Non-commercial loss rulings and determinations. |
| Non-commercial losses: similar business activities |
| If you are carrying on more than one business activity, they can be grouped together when you need to work out if you can deduct a loss. NAT 3384. Information current from 2009-10 onwards. |