Professionalism. Integrity. Reliability.

Non-commercial losses

If you’re an individual in business, as either a sole trader or in partnership, and your business makes a loss, you may be able to offset the loss against your other income such as salary and wages.

To be eligible, you must meet the income requirement and pass one of the four tests. The four tests are:

  • The assessable income test – the business has assessable income of at least $20,000.
  • The profits test – the business had a profit for tax purposes in three out of the past five years (including the current year).
  • The real property test – the value of real property or of an interest in real property that you used in the business on a continuing basis was at least $500,000.
  • The other assets test – the value of assets (excluding real property, cars, motor cycles and similar vehicles) you used on a continuing basis in carrying on the business was at least $100,000.

You can only claim losses from genuine business activities.

You can’t offset losses from hobbies or investments.


Griffin & Associates

79 Denham St, Townsville City QLD 4810

Phone 07 4772 6588

Chartered Accountants