Private ruling: The Commissioner's discretion for non-commercial losses
Date of advice: 12 June 2021
Published: August 2021
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 business in the calculation of your taxable income for the 20XX-XX financial year? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner has granted his discretion. 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 Income Tax Assessment Act 1997 for the 20XX-XX financial year. You purchased a number of acres of fertile land (the property). The property is operated by you and your partner to graze livestock through another entity. You commenced business operations on Month X 20XX. You are producing xxxx for sale and xxxx. You are growing fodder crops to feed livestock and will sell any excess fodder produced. You purchased livestock in 20XX but due to the breeding cycle no offspring was produced and ready for sale before 30 June 20XX. You first produced income in Month X 20XX with xxxx being sold in Month X 20XX and xxxx in Month X 20XX. The income from these activities totalled $X.

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)


This ruling applies for the following period: