Commonwealth Consolidated Acts

INCOME TAX ASSESSMENT ACT 1997 - SECT 230.35

Borrowings etc. used for private or domestic purpose

             (1)  Subsections (2) and (3) apply if:

                     (a)  a * borrowing is made by you, or credit is provided to you, under a * financial arrangement; and

                     (b)  you use some or all of the funds borrowed or the credit provided for a private or domestic purpose.

             (2)  This Division does not apply to a gain you make from the arrangement to the extent that you use the funds raised or the credit provided for a private or domestic purpose.

             (3)  A loss you make from the arrangement is not allowable as a deduction to you under any provision of this Act to the extent that you use the funds raised or the credit provided for a private or domestic purpose.

Derivative financial arrangement held for private or domestic purpose

             (4)  Subsections (5) and (6) apply if:

                     (a)  you are an individual; and

                     (b)  you make a gain or loss from a * derivative financial arrangement; and

                     (c)  the arrangement is held, wholly or in part, for a private or domestic purpose.

             (5)  This Division does not apply to a gain you make from the arrangement to the extent that the arrangement is held or used for a private or domestic purpose.

             (6)  A loss you make from the arrangement is not allowable as a deduction to you under any provision of this Act to the extent that the arrangement is held or used for a private or domestic purpose.

Method to be applied to take account of gain or loss