OneÂ must first meet the income requirement before you can use one of the four tests to pass the non-commercial loss rules. If you subsequently pass one of the four tests, you can deduct your loss.
There are changes to the non-commercial loss rules that apply for the 2009â€“10 and later income years.
The key changes include:
- the introduction of an income requirement to further restrict the circumstances under which a business loss can offset other income
- a new exception for business losses that are solely caused by deductions claimed for the small business and general business tax break
- a new Commissionerâ€™s discretion for individuals who do not meet the income requirement but whose business activity is subject to a lead time
- ensuring existing Commissionerâ€™s discretions continue to apply.