Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 35.5

             (1)  The object of this Division is to improve the integrity of the taxation system by:

                     (a)  preventing losses from non-commercial activities that are carried on as * businesses by individuals (alone or in partnership) being offset against other assessable income; and

                     (b)  preventing pre-business capital expenditure and post-business capital expenditure by individuals (alone or in partnership) in relation to non-commercial activities being deductible under section 40-880 (business related costs);

unless certain exceptions apply.

             (2)  This Division is not intended to apply to activities that do not constitute carrying on a * business (for example, the receipt of income from passive investments).