Private ruling: Non-commercial losses
Date of advice: 16 May 2018
Published: August 2018
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion in paragraph 35-55(1)(c) of the Income Tax Assessment Act 1997 to allow you to include any losses from your business activity in your calculation of taxable income for the 2016-17 financial year? | A1: Yes Having regard to your full circumstances, it is accepted that it is in the nature of the business activity that has prevented you making a tax profit. It is also accepted that you will make a tax profit within the commercially viable period for your industry. Therefore, the Commissioner will exercise the discretion in the 2016-17 financial year. For more information on non-commercial losses, please visit our website at https://www.ato.gov.au/Business/Non-commercial-losses/ , or search quick code QC 33774 at www.ato.gov.au .

Relevant facts and circumstances: Your income for non-commercial loss purposes for the 201X-1Y financial year is more than $xxx. You are carrying on a business which commenced in mth/201X. You plan on growing the business as well as leasing a second property. You have provided your projected profit and loss statements indicating that the activity will be profitable from the 201X-1Y 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)(c)