Non-commercial losses: Treasury seeks comments
Treasury has released exposure draft legislation <http://www.treasury.gov.au/contentitem.asp?NavId=002&ContentID=1553> to implement changes announced in the 2009 – 10 Federal Budget to tighten the non-commercial losses rules for individuals. In the Budget, the government announced that taxpayers with an adjusted taxable income of over $250,000 will only be able to able to deduct expenses from non-commercial business activities against the income from those activities. Any excess deductions will be quarantined to the business activity.
The proposed changes to the ITAA 1997 essentially add a $250,000 income test limit so that unless that income requirement is met and one of the four existing objective tests is met, losses from non-commercial business activities are quarantined.
Submissions are due by Sunday 26 July.
