Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The rule in subsection 35 - 10(2) may be modified for an income year if you * derived * exempt income in that year.
(2) Any amount to which paragraph 35 - 10(2)(b) would
otherwise apply for an income year for you is reduced by your *
net exempt income for that year (after * utilising the net exempt income under
section 36 - 10 or 36 - 15 (about tax losses)). This reduction is made
before you apply the paragraph 35 - 10(2)(b) amount against assessable
income from the * business activity.