Private ruling: Non-commercial losses - Commissioner's discretion special circumstances
Date of advice: 9 October 2020
Published: November 2020
Ruling period: Year ended 30 June 20XX | Year ended 30 June 20XX
Date scheme commenced: 01 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion 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 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 prevented you from passing a test. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au.

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 attend community events for income making purposes. Your pre-booked events would have seen you meet the income test for the 20XX-XX financial year. Your projected income earning capacity for the 20XX-XX and 20XX-XX financial years would be greater than $20,000 all be it for the special circumstances.

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 subsection 35-30(b) | Income Tax Assessment Act 1997 paragraph 35-55(1)(a)