Section 35Income Tax Assessment Act 1997 (Cth)

‑1  What this Division is about

This Division prevents losses of individuals from non‑commercial business activities being offset against other assessable income in the year the loss is incurred. The loss is deferred.

It sets out an income requirement and a series of tests to determine whether a business activity is treated as being non‑commercial.

The deferred losses may be offset in later years against profits from the activity. They may also be offset against other income if the income requirement and one of the other tests are satisfied, or if the Commissioner exercises a discretion.

Table of sections

Operative provisions

35‑5 Object

35‑10 Deferral of deductions from non‑commercial business activities

35‑15 Modification if you have exempt income

35‑20 Modification if you become bankrupt

35‑25 Application of Division to certain partnerships

35‑30 Assessable income test

35‑35 Profits test

35‑40 Real property test

35‑45 Other assets test

35‑50 Apportionment

35‑55 Commissioner’s discretion

Sourced from the Federal Register of Legislation at 25 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.

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