IX Advisory

BNI Powerhouse Awesome presentation by our property team!

🔍 ATO Focus Area: Using business losses to offset other income

Did you know that if you make a loss from a business activity, you may face restrictions on how you use that loss for tax purposes?

A Non-Commercial Business Loss (NCL) occurs when your business activity (like being a sole trader or part of a partnership) doesn’t generate enough income to cover its expenses. However, there are specific rules on how you can handle these losses:

Why is this important?

The ATO is cracking down on individuals trying to offset NCLs against their other income. It's crucial to follow the rules to avoid penalties and ensure you're reporting your taxes accurately.

If you want more information, please reach out!