Non-commercial losses

If you make a net loss in a business activity you may, under certain circumstances, claim that loss by offsetting it against your income from other sources. Information current for 2009-10 and later income years.

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 where 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.
  • Ensuring existing Commissioner’s discretions continue to apply

More information