Private ruling: Non-commercial loss
Date of advice: 20 March 2019
Published: May 2019
Ruling period: Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX | Year ending 30 June 20XX
Date scheme commenced: XX

Ruling: Q1: Will the Commissioner exercise the discretion to allow you to include any losses from your forestry activity business in the calculation of your taxable income for the 20XX-XX to 20XX-XX financial years? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner has granted his discretion. It is accepted there is a 'lead time' in the nature of your business activity and you will pass a test or make a tax profit within your industry's commercially viable period. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au

Relevant facts and circumstances: Your activity is forestry, and you purchased a property for the sole purpose of primary production. You have two paddocks, paddock one has XX with expected clear-felling after 25 years, and paddock two with high value timbers and expected clear-felling between 40 and 80 years. You have updated your business plan, and your expected clear-felling of the trees are on schedule for year 20XX.

Relevant legislative provisions: Income Taxation Assessment Act 1997 section 35-55 | Income Taxation Assessment Act 1997 paragraph 35-55(1)(b)