Sandy is employed part-time by a firm of engineers and receives a salary of $25,000 per annum. She has no other income. On 1 July 2020, Sandy purchased a farm for $250,000 and planted 500 Macadamia Nut trees at a cost of $12,000. She expects the venture to be profitable when the trees mature in 5 years time. For the year ended 30 June 2021 no income was received and the venture reported a $10,000 loss for taxation purposes. Which of the following statements is most representative of the taxation treatment of Sandys loss from the venture in respect of the 2021 year?

		The loss can be offset against her salary income.
		The loss cannot be offset against her salary income as the venture represents a hobby and not a business.
		The loss cannot be offset against her salary income as it represents a non-commercial loss by virtue of Div. 35 of the Income Tax Assessment 1997.
		The loss cannot be offset against her salary income as only losses from investments can be offset against salary income.
		Sandy must apply for the Federal Commissioner of Taxations discretion to allow the loss to be offset on the basis the venture will be profitable in a commercially viable period.