The ATO released TR 92/3 after the Myer's case, which explains when profits from a one-off transaction are considered income (profit-making scheme). According to this ruling, such profits are typically seen as income instead of capital gains when:
(a) The taxpayer's intention or purpose in the transaction was to make a profit or gain. This doesn't have to be the sole reason for the transaction, but it should be significant. Also, if a taxpayer initially didn't intend to make a profit but later changes their mind, it can still be considered a profit-making scheme. The ATO looks at the objective facts and circumstances to determine this intention, though the taxpayer's stated intention matters too, especially if it's doubted.
(b) The transaction was conducted as part of a business activity or commercial operation.
For a profit made from selling property (where the taxpayer isn't running a property development business), the ATO considers it a profit-making scheme if the taxpayer aimed to profit from it and the transaction was commercial. Generally, a transaction is commercial if it's like running a business, even if it's not repetitive.
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