| Non-commercial business losses quarantined for high income earners. |
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From 01 July 2009, the Government will tighten the application of the rules on the use of non-commercial losses to prevent high-income individuals from offsetting excess deductions from non-commercial business activities against salary and other income.
That is, taxpayers with an adjusted taxable income of over $250,000 will have excess deductions quarantined to the business activity (it appears that excess deductions will be quarantined even where one of the non-commercial loss tests has been satisfied). Affected taxpayers will be able to apply to the commissioner of taxation for relief from the rules where the activities are independently assessed as being commercially viable.
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