Non-commercial losses paper

Published on 21 Aug 09 by SOUTH AUSTRALIAN DIVISION, THE TAX INSTITUTE

With the Government's announcement in the Budget and subsequent issue of exposure draft legislation, non-commercial losses are firmly back on the agenda and the push to tighten the existing rules has begun.

With this renewed focus on non-commercial losses, it is a perfect opportunity to recap the current rules, tricks and traps and also understand the effect of the proposed changes and identify strategies to assist clients who may be caught by them. This paper covers:

• an overview of the non-commercial losses rules
• the current test criteria
• the exceptions to the rules
• the Commissioner's discretion in relation to the current rules
• the changes outlined in the exposure draft
• the effect of the current rules and proposed changes on privately held business.

Author profile

Adam Fisher CTA

Adam is a Manager in the privately held business division of Grant Thornton. He specialises in meeting the compliance, planning and general business needs of a diverse client base including family owned businesses, high wealth individuals and primary producers. - Current at 17 July 2009

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