Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p4
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 4/37)
Character Range: 403333–405920

deduct all or part of your remaining quarantined amount for an income year if your assessable income for the year from activities of a kind referred to in subsection (3) exceeds your deductions for the year relating to those activities. The amount you can deduct is the lesser of that excess and that remaining quarantined amount.
 (7) You reduce your quarantined amount for the year by the amount you deduct. You make this reduction before a reduction under subsection (8).

Modification if you have exempt income
 (8) You reduce any remaining quarantined amount you have for an income year by your *net exempt income for that year (after *utilising the net exempt income under section 35‑15 (about non‑commercial business activities) or section 36‑10 or 36‑15 (about tax losses)).

Modification if you become bankrupt
 (9) The modification in subsection (10) has effect if:
 (a) in an income year (the current year) you become bankrupt or are released from a debt by the operation of an Act relating to bankruptcy; or
 (b) you became bankrupt before the current year and:
 (i) the bankruptcy is annulled in the current year under section 74 of the Bankruptcy Act 1966 because your creditors have accepted a proposal for a composition or scheme of arrangement; and
 (ii) under the composition or scheme of arrangement, you have been, will be or may be released from some or all of the debts from which you would have been released if you had instead been discharged from the bankruptcy.
 (10) This Act applies to you as if any amount that:
 (a) is a quarantined amount for you for the current year or was a quarantined amount for you for an earlier year; and
 (b) has not been applied under section 118‑80 and that you have not yet deducted;
were not an amount relating to using or holding boats that you can deduct for the current year or a later year.

26‑50  Expenses for a leisure facility
 (1) You cannot deduct under this Act a loss or outgoing to the extent you incur it:
 (a) to acquire ownership of a *leisure facility; or
 (b) to retain ownership of a leisure facility; or
 (c) to acquire rights to use a leisure facility; or
 (d) to retain rights to use a leisure facility; or
 (e) to use, operate, maintain or repair a leisure facility; or
 (f) in relation to any obligation associated with your ownership of a leisure facility; or
 (g) in relation to any obligation associated with your rights to use a leisure facility.
However, there are exceptions (see subsections (3), (4) and (8)).

What is a leisure facility?
 (2) A leisure facility is land, a building, or part of a