Private ruling: Non-commercial losses - special circumstances - $250,000 or more
Date of advice: 17 September 2021
Published: November 2021
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise discretion in paragraph 35-55(1)(a) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow you to include any losses from your business activity in your calculation of taxable income for the 20XX-XX financial year? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner has granted discretion. It is accepted that there are special circumstances which prevented your business activity from making a tax profit in the 20XX-XX financial year. Further information on non-commercial losses can be found by searching QC 33774 on ato.gov.au.

Relevant facts and circumstances: You do not satisfy the less than $250,000 income amount set out in subsection 35-10(2E) of the ITAA 1997 for the 20XX-XX financial year. Your business activity made a loss in the 20XX-XX financial year due to the impact of the COVID-19 pandemic and associated government restrictions on higher education providers. You expect to make a tax profit in the 20XX-XX financial year.

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 35 | Income Tax Assessment Act 1997 subsection 35 - 10(1) | Income Tax Assessment Act 1997 subsection 35 - 10(2) | Income Tax Assessment Act 1997 subsection 35 - 10(2E ) | Income Tax Assessment Act 1997 section 35 - 55 | Income Tax Assessment Act 1997 paragraph 35 - 55(1)(a)


This ruling applies for the following period: