Non-commercial losses: Commissioner's discretion


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, refer to Non-commercial losses.

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    Last modified: 01 Oct 2013QC 16248