Private ruling: Non-commercial losses - special circumstances
Date of advice: 29 May 2021
Published: August 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 11 October 20XX

Ruling: Q1: Will the Commissioner exercise the discretion to allow you to include any losses from your laundrette business in the calculation of your taxable income for the 20XX-XX financial year? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner has granted his discretion. It is accepted that your business activity was affected by special circumstances outside your control which prevented you from making a profit. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au

Relevant facts and circumstances: You commenced operation of the business in October 20XX. The business operates 24 hours a day. From December 20XX, your business activity was severely impacted by tram works. The tram upgrades caused continual interruptions for a X month period along the street that your business is located. At times tram works were being undertaken 24 hours a day by the relevant state authority. Additional road works closed access for thirteen months which added extra restrictions for customers to access your premises. If it had not been for these circumstances, you expect your business would have made a profit. You expect the business activity to make a profit 20XX-XX financial year. Your income for non-commercial loss purposes exceeds $250,000.

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 paragraph 35-55(1)(a) | Income Tax Assessment Act 1997 paragraph 35-55(1)(c)


This ruling applies for the following period