Private ruling: Non-commercial losses - special circumstances
Date of advice: 24 September 2021
Published: December 2021
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise discretion under paragraph 35-55(1)(a) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow you to include any losses from your business in your calculation of taxable income for the 20XX and 20XX income years? | A1: Yes. Having considered your circumstances and the relevant factors, the Commissioner has granted discretion. It is accepted that your business activity was affected by special circumstances outside your control, which caused you to make a loss in the 20XX and 20XX income years.

Relevant facts and circumstances: You commenced a business activity through a partnership. The partnership made losses in the 20XX and 20XX income years due to bushfires. The extensive bushfire damage and resulting time to finalise insurance delayed full operation of the business. Your income for non-commercial loss purposes was over $250,000 in the 20XX and 20XX income years. You expect the business activity to become profitable again in the 20XX or 20XX income 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) | Income Tax Assessment Act 1997 Paragraph 35-55(1)(b)


This ruling applies for the following periods: