Private ruling: Commissioner's discretion for non-commercial losses
Date of advice: 10 December 2019
Published: February 2020
Ruling period: Year ended 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 [XXXX] business in the calculation of your taxable income for the [20YY-YY] financial [year/years]? | A1: Having considered your circumstances and the relevant factors the Commissioner has granted his discretion. It is accepted that your business activity was affected by special circumstances outside your control which caused you to make a loss. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au

Relevant facts and circumstances: You do not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997. You carry on a primary production business which commenced a number of years ago. You submit that you were affected by special circumstances (severe weather conditions) in the 20XX-XX financial year. You have submitted the following evidence to substantiate your claim: · Confirmation from the relevant Australian government authority that the area where you are conducting your business activity has been affected by the severe weather conditions from early in 20XX through to late 20XX. You incurred significant costs as a result of the severe weather conditions which caused your business to make a loss. You intend to return to profit in the 20XX-XX 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)(a)