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.