Income Tax Assessment Act 1997



Division 35 - Deferral of losses from non-commercial business activities  

Operative provisions  

SECTION 35-45   Other assets test  


The rules in section 35-10 do not apply to a * business activity for an income year if the total values of assets that are counted for this test (see subsections (2) and (4)) and that are used on a continuing basis in carrying on the activity in that year is at least $100,000.


The assets counted for this test, and their values for this test, are set out in this table:

Assets counted for this test and their values
Item Asset Value
1 An asset whose decline in value you can deduct under Division 40 The asset ' s *written down value
2 An item of *trading stock Its value under subsection 70-45(1)
3 An asset that you lease from another entity The sum of the amounts of the future lease payments for the asset to which you are irrevocably committed, less an appropriate amount to reflect any interest component for those lease payments
4 Trade marks, patents, copyrights and similar rights Their *reduced cost base

The value of such an asset is worked out:

(a) as at the end of the income year; or

(b) if you stopped carrying on the * business activity during the year:

(i) as at the time you stopped; or

(ii) if you disposed of the asset before that time in the course of stopping carrying on the activity - as at the time you disposed of it.

However, these assets are not counted for this test:

(a) assets that are real property or interests in real property that are taken into account for that year under section 35-40 ;

(b) * cars, motor cycles and similar vehicles.


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