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  

Operative provisions  

SECTION 35-5   Object  

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


(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.

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).

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