Private ruling: Non-commercial business losses and the Commissioner’s discretion
Date of advice: 19 October 2018
Published: December 2018
Ruling period: Financial year ended 30 June 20XX | Financial year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion in to allow you to include any losses from your business activity in the calculation of your taxable income for the 20XX-XX and 20XX-XX financial years? | A1: Yes . Having regard to your full circumstances, the Commissioner has granted his discretion as 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: You satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997 You commenced a primary production business in the 20XX financial year. You expect to make over $XXX in assessable income in the 20XX financial 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 paragraph 35-55(1)(b)