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  

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History

Div 35 inserted by No 90 of 2000.

Operative provisions  

SECTION 35-35   Profits test  

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35-35(1)    

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The rules in section 35-10 do not apply to a ^* business activity (except an activity carried on by one or more individuals as partners, whether or not some other entity is a member of the partnership) for an income year (the current year ) if, for each of at least 3 of the past 5 income years (including the current year) the sum of the deductions attributable to that activity for that year (apart from the operation of subsections 35-10(2) and (2C) ) is less than the assessable income from the activity for that year.

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S 35-35(1) amended by No 32 of 2006, s 3 and Sch 2 items 10 and 11, by substituting " rules in section 35-10 do not apply " for " rule in section 35-10 does not apply " and substituting " subsections 35-10(2) and (2C) " for " subsection 35-10(2) " , applicable to expenditure incurred on or after 1 July 2005.

35-35(2)    

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For a ^* business activity you carried on with one or more others as partners, the rules in section 35-10 do not apply to you for the current year if, for each of at least 3 of the past 5 income years (including the current year) the sum of your deductions (including your share of the partnership deductions) attributable to that activity for that year (apart from the operation of subsections 35-10(2) and (2C) ) is less than your assessable income (including your share of the partnership ' s assessable income) from the activity for that year.

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S 35-35(2) amended by No 32 of 2006, s 3 and Sch 2 items 12 and 13, by substituting " rules in section 35-10 do not apply " for " rule in section 35-10 does not apply " and substituting " subsections 35-10(2) and (2C) " for " subsection 35-10(2) " , applicable to expenditure incurred on or after 1 July 2005.

S 35-35 inserted by No 90 of 2000.

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