You cannot deduct under this Act a loss or outgoing to the extent that the loss or outgoing is incurred in gaining or producing a rebatable benefit (within the meaning of section
Income Tax Assessment Act 1936
To the extent that you use property in gaining or producing a rebatable benefit, your use of the property is taken
to be for the
purpose of producing assessable income if subsection (1) would stop you deducting a loss or outgoing if you incurred it in the income year in gaining or producing the rebatable benefit.
Under some provisions of this Act, in order to deduct an amount for your property, you must have used the property for the purpose of producing assessable income.