Private ruling: Non-commercial loses relating to the growing of avocados.
Date of advice: 11 May 2018
Published: July 2018
Ruling period: Period ending 30 June 20XX
Date scheme commenced: XX XX 20XX

Ruling: Q1: Will the Commissioner exercise the discretion in subparagraph 35-55(1)(c) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow you to include losses from your business activity of avocado farming in the calculation of your taxable income for 20XX-20XX income year? | A1: Yes Having regard to your full circumstances, it is accepted that it is in the nature of the business activity that has prevented you making a tax profit. It is also accepted that you will make a tax profit within the commercially viable period for your industry. Consequently the Commissioner will exercise his discretion in the 20XX-20XX financial year.

Relevant facts and circumstances: You do not satisfy the income requirement set out in subsection 35-10(2E) ITAA 1997. You purchased a XXX acre avocado farm with XXX avocado trees. Your business activity of growing avocados commenced on XX XX 20XX. You have provided an estimate indicating that the farm will make a profit in the 20XX-20XX financial year.

Relevant legislative provisions: Income Tax Assessment Act 1997 subsection 35-10(2E) Income Tax Assessment A ct 1997 paragraph 35-55(1)(c)