Question:

Save Tax: Non-Commercial losses

Answer:

Recent changes are outlined below:

July 1, 2022

Loss carry back for eligible companies extended to cover 2023 income year.
Professional firm profits diverted to the professional's spouse or other associates to be reviewed under new Tax Office guidance.
Corporate collective investment vehicle legislative regime introduced.
Temporary full expensing of depreciating assets extended to include 2023 income year.
Depreciable assets of a company joining a tax consolidation group have tax costs setting rules modified for assets depreciated under temporary full expensing rules.

December 9, 2021

Reduced Pandemic leave disaster payment of $750 per week made available through to 30 June 2022.

August 5, 2021

COVID-19 Disaster Payments are non-assessable non-exempt income in 2021 income year and later. Payments phasing out as vaccination rates increase.

July 1, 2021

New Investment Engagement Service launched for businesses planning significant new investments in Australia.
Tax Office small business independent review service made permanent for businesses with turnover < $10m, for income tax, GST, exercise, luxury car tax, wine equalisation tax and fuel tax credits. Requested before amended assessment issued.
Small business income tax offset for individuals increased to provide a reduction of 16% for a tax payable up to $1,000.
Self-managed superannuation funds can now have six members, increased from four members previously.

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July 1, 2021

Some COVID -19 state and territory business grants received by small and medium enterprises are non-assessable, non-exempt income for 2021 and 2022 income years.
Certain state, territory and local government financial support for individuals and businesses suffering COVID-19 impacts made exempt where businesses have turnover less than $50 million and only in eligible programs.

March 31, 2021

JobKeeper payments scheme ended.

October 5, 2020

Boosting apprenticeship commencements subsidy (up to 50% of apprentice's wages) is assessable income.

June 4, 2020

Homebuilder grant for new home or substantial renovation construction is not subject to income tax.

April 1, 2020

COVID-19 cash flow boost payments are not subject to income tax

Losses from business operations cannot be claimed against other income if they are classified as non-commercial. These losses quarantined and can only be claimed against future profits from the same business activity.You can claim a business loss against other income if the loss satisfies at least one of the following tests:

The loss relates to rental or investments by an individual (negative gearing);
The activity earned gross income (before expenses) of $20,000
The activity utilised real property exceeding $500,000 in value (the greater of cost or market value);
The activity utilised other assets to a value of $100,00 (excluding motor cars), the value of these assets is determined by their taxation value;
The particular activity resulted in a taxable income (net profit) in three of the last five years; or
The loss arose in circumstances outside your control, including natural disasters or from an activity with a significant commercial purpose or character

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