Private ruling: Non-commercial losses
Date of advice: 2 September 2025
Published: 3 November 2025
Ruling period: Income year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise their discretion in section 35-55 of the Income Tax Assessment Act 1997 for your activity for the income year ended 30 June 2025? | A1: Yes. The Commissioner accepts that it is an inherent characteristic of a cattle fattening activity that there is a period of time between when cattle are purchased and when they are at the desired sale weight. You will meet the income requirement, and the Partnership will meet the assessable income test in the year ending 30 June 20XX.

Relevant facts and circumstances: You purchased a property (hereafter, the Property). You are a partner in a Partnership that operates a cattle fattening activity on the Property. The Partnership purchased steers, on 30 May 20XX. The Partnership will dispose of the steers once they reach the ideal sale weight. The steers will not reach the ideal weight before 30 June 20XX. You have projected that the Partnership will produce more than $20,000 when sold in the year ended 30 June 20XX. You returned that you did not have any reportable fringe benefits, reportable superannuation contributions, or net investment losses in the year ended 30 June 20XX. Your taxable income for the year ended 30 June 20XX was less than $250,000. The total of your taxable income (excluding any losses from the cattle activity), reportable fringe benefits, reportable superannuation contributions, and net investment losses will be less than $250,000 in the income years ended 30 June 20XX and 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 35-10. | Income Tax Assessment Act 1997 subsection 35-55(1)(b).