Private ruling: Assessable income
Published: August 2012
Ruling period: Year ended 30 June 2010 | Year ended 30 June 2011 Year ended 30 June 2012
Date scheme commenced: 01 July 2009

Ruling: Q1: Can my deferred loss amounts carried forward from previous years be counted as an income amount in the current or future years? | A1: No.


Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-1 Income Tax Assessment Act 1997 section 6-5 Income Tax Assessment Act 1997 section 6-10

Reasons for decision: Summary: Section 6-1 of the Income Tax Assessment Act 1997 (ITAA 1997) defines assessable income as ordinary income and statutory income. Subsection 6-5(1) of the ITAA 1997 provides that an amount is included in assessable income if it is income according to ordinary concepts (ordinary income). The terms 'income' and 'ordinary income' are not otherwise defined by the Income Tax Assessment Act 1936 or the ITAA 1997. | Detailed Reasoning - The Macquarie Dictionary defines income as:: 1. the returns that come in periodically, especially annually, from one's work, property business, etc; revenue; receipts, or 2. something that comes in. Statutory income is defined in section 6-10 of the ITAA 1997. It is defined as amounts which are usually not ordinary income but which are included in assessable income by a specific provision of the ITAA 1997 or ITAA 1936. Section 10-5 of the ITAA 1997 lists the specific provisions that include an amount in assessable income. A loss is not an amount received, nor is it statutory income. Therefore, a loss can never constitute an 'income' amount.

Please check this edited version to be sure that there are no details remaining that you think may allow you to be identified. If you have any concerns about this ruling you wish to discuss, you will find our contact details in the fact sheet. | Relevant facts: You claimed losses from a business activity which were deferred in the 2009-10 and 2010-11 financial years.