Miscellaneous 2006

The non commercial loss restrictions: A very blunt instrument for micro business

Source: Australian Tax Forum Journal Article

Published Date: 1 Jul 2006

In 1999 many loss making taxpayers such as small primary producers, artists and other micro businesses, as well as corporate groups, share and property investors nervously sat in the trenches waiting as their losses were under attack from the pending Ralph Report into business taxation. Then on 11.45am AEST 21 September 1999, the whistle sounded for certain individuals running micro businesses to step out into no mans land and face the non-commercial loss provisions [NCL] in Div 35 Income Tax Assessment Act 1997 [ITAA 1997]. The NCL provisions restricted individuals from offsetting losses from non-commercial activities against other income. However, many were spared since these loss restrictions did not extend to passive investors, larger businesses and to micro primary producers and micro artists with other income of less than $40,000.

Sorry, this is subscriber only content.

To gain access to this material and much more - Subscribe Now.

(Note: Members can access Taxation in Australia journal articles without a Tax Knowledge Exchange subscription - please log in to access).

Already a Subscriber? Login now

Already a Subscriber? Login now


  • Published By: Paul Kenny
  • Published On:1 Jul 2006

The material is copyright. Apart any fair dealing for the purpose of private study, research criticism or review, as permitted under the copyright Act, no part may be reproduced by any process without written permission from The Tax Institute.

Unless expressly stated, opinions are not that of The Tax Institute, which accepts no responsibility for the accuracy of any of the information contained within it.

The Tax Institute
(ABN 45 008 392 372 (PRV14016))


The Tax Institute is a Recognised Tax Agent Association (RTAA) under the Tax Agent Services Regulations 2009. 

Copyright Statement

All materials provided on this site are protected by copyright and are owned by or licensed to TTI.

Except as expressly permitted by TTI or the copyright owner, any person or company who uses this site must not use, reproduce, redistribute, retransmit, publish or otherwise transfer, or commercially exploit, the materials or any information, software or other content, in whole or in part, which is available through this site.


Miscellaneous 2006

Share this page