Private ruling: Non-commercial losses -lead time
Date of advice: 8 June 2020
Published: July 2020
Ruling period: Year ended 30 June 20XX to Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion to allow you to include any losses from your grape growing and wine making business in the calculation of your taxable income for the 20XX-XX to 20XX-XX income 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 grape growing and wine making business activity and you will make a tax profit within your industry's commercially viable period.

Relevant facts and circumstances: You do not satisfy the less than $250,000 income requirement set out in subsection 35-10(2E) of the Income Tax Assessment Act 1997 . You commenced a grape growing and wine making business in the 20XX-XX income year. Vines have been planted and you expect your first harvest of grapes in the 20XX-XX income year. You project that your activity will produce assessable income greater than the allowable deductions for the activity in the 20XX-XX income year.

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 subsection 35-55(1)(c)