Private ruling: Commissioner's discretion for non-commercial losses
Date of advice: 3 March 2021
Published: June 2021
Ruling period: Year ending 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

Relevant facts and circumstances: Your income for non-commercial loss purposes was under $250,000 for the 20XX-XX financial year. You carry on a business that provides its services to primary producers. The business commenced on XX/XX/XXXX. Due to the ongoing drought, the primary producers that your business provides its services to have not been able to plant and harvest their usual quantity of crops. This has resulted in a reduction in demand for your contracting services. Your business operations have been predominantly profitable until the onset of the drought. Demand for your contracting services for the 20XX-XX financial year has returned to normal levels.

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)(a)