Home – New Forums Money matters How does Sole Trader draw money? Reply To: How does Sole Trader draw money?

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nitro-it, post: 81977 wrote:
He said if I trade at a loss for the year, and the ATO puts me down as a hobby, then the income I derive from the business is not taxable and has no affect on FTBs etc. If the ATO classifies me as a business and I trade at a loss, then the loss is tax deductible for that financial year only.

A profit or loss doesn’t really determine if the ATO classify who as a business or hobby – so be careful with that.
Also, I beleive you can carry a loss in one year forward as a deduction in sebsequent years.