Tightening access to non-commercial business losses from 1 July 2009
From the 2009-2010 financial year, where taxpayers with adjusted taxable income of over $250,000 incur excess deductions from non-commercial business activities, those excess deductions will be quarantined to that business activity. The existing rules will continue to apply for taxpayers with adjusted taxable income of $250,000 or less.
Oculus comment
This measure tightens the application of the rules on the use of non-commercial losses to prevent high income earners from offsetting excess deductions against salary and other income where those activities are more likely to be hobbies or lifestyle choices.
