When you give your child time-out for unacceptable behaviour, you take your child away from interesting activities and attention. Time-out can be a very effective way of helping children learn the difference between acceptable and unacceptable behaviour.
What is time-out?
Time-out involves taking your child away from interesting activities and not giving your child attention for a short period of time.
If your child is behaving in an unacceptable way, time-out is a strategy that can help you manage your child’s behaviour.
Source: http://raisingchildren.net.au/articles/using_time-out_to_guide_your_childs_behaviour.html