Private ruling: Non Commercial Losses - Lead time
Date of advice: 26 August 2025
Published: 27 October 2025
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Do you pass the assessable income test in paragraph 35-30(b) of the Income Tax Assessment Act 1997 (ITAA 1997) for the income year ended 30 June 20XX? | A1: Yes You pass the assessable income test as a reasonable estimate of your assessable income as if you operated the business for the whole year would exceed $20,000 if estimated as outlined in paragraph 62 of Taxation Ruling TR 2001/14 Income tax: Division 35 - non-commercial business losses , in accordance with paragraph 35-30(b) of the ITAA 1997 .

Relevant facts and circumstances: You satisfy the less than $250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997. You started your business at the end of the 20XX-XX financial year. You have bought business assets and have obtained public liability insurance. You operated for less than one month in the 20XX-XX financial year earning assessable income. A reasonable estimate of your assessable income had you operated for the whole year would be more than $20,000. In the 20XX-XX financial year you operated for the entire year and you have made a profit.

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)