Private ruling: The Commissioner’s discretion for non-commercial losses
Date of advice: 4 September 2018
Published: November 2018
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 cattle fattening business in the calculation of your taxable income for the 20XX-XX financial year? | A1: Yes. Having regard to your full circumstances, the Commissioner has granted his discretion as it is accepted there is a 'lead time' in the nature of your business activity. You will 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 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)


You do not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997. | You commenced business operations in the 20XX financial year. | You will make a tax profit in the 20XX financial year.