Document ID: chunk:federal_register_of_legislation:C2010C00260:clause:2_3
Version: federal_register_of_legislation:C2010C00260
Segment Type: clause
Provision Reference: sch 2 cl 3
Character Range: 37705–38475

3  Section 35‑5
Repeal the section, substitute:

35‑5  Object

 (1) The object of this Division is to improve the integrity of the taxation system by:
 (a) preventing losses from non‑commercial activities that are *carried on as *businesses by individuals (alone or in partnership) being offset against other assessable income; and
 (b) preventing pre‑business capital expenditure and post‑business capital expenditure by individuals (alone or in partnership) in relation to non‑commercial activities being deductible under section 40‑880 (business related costs);
unless certain exceptions apply.

 (2) This Division is not intended to apply to activities that do not constitute *carrying on a *business (for example, the receipt of income from passive investments).