Private ruling: Non-commercial losses - special circumstances
Date of advice: 23 June 2021
Published: August 2021
Ruling period: Period 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 activity in the calculation of your taxable income? | A1: Yes Having considered your circumstances and the relevant factors the Commissioner has granted his discretion. It is accepted there were 'special circumstances' that prevented you from meeting the assessable income test for your activity. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au

Relevant facts and circumstances: You operate a primary production industry on a XX acre property. Your other adjusted taxable income was between $XXX and $XXXX, and your total share of the partnership loss distributed for the financial year ended 30 June 20XX was $X,XXX. The operation owns plant and equipment to assist in maintaining and harvesting the crop for sale. The harvested XXXXX are sold to XXXXX. The normal yield is around XXXXX per season. In 20XX, the area experienced a weather event that destroyed a high proportion of the crop for the 20XX-20XX growing season, which resulted in a lower yield for the 20XX harvest. The event also significantly destroyed starter crops to be used in the following year, that resulted in a significantly reduced harvest in 20XX as well.

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


This ruling applies for the following period: