Private ruling: Non-commercial losses
Date of advice: 24 September 2019
Published: November 2019
Ruling period: Year ending 30 June 2019
Date scheme commenced: 1 June 2018

Ruling: Q1: Will the Commissioner exercise the discretion to allow you to include any losses from your business in the calculation of your taxable income for the 2018-19 year? | A1: Yes Having regard to your full circumstances, the Commissioner has granted his discretion as it is accepted that your business activity was affected by special circumstances outside your control which caused you to make a loss. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au

Relevant facts and circumstances: You and your partner attended a course in order to acquire information to combat deaths due to a worm. Based on advice given at the course, medication as administered to the herd resulting in pregnant animals and a prized breeding male dying, the majority of the remaining pregnant animals aborted resulting in only a small number of births. The farm is drought stricken and feed is being purchased to feed the livestock. The farm has sold its herd of cattle due to the cost of purchasing feed. Up to a hundred natural increase are expected in the 2019-20 year, female animals will be kept to increase the breeding stock and the young male animals kids will be sold at 6-9 months to bring in income. The purchase of some pregnant females is also planned in the 2019-20 year to further increase breeding stocks.

Relevant legislative provisions: 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 paragraph 35-55(1)(a)


This ruling applies for the following period :