Private ruling: Non-commercial losses and the exercise of the Commissioner’s discretion
Date of advice: 8 November 2018
Published: February 2019
Ruling period: Year ended 30 June XXXX
Date scheme commenced: 1 July XXXX

Ruling: Q1: Will the Commissioner exercise the discretion to allow you to include any losses from your crop growing business in the calculation of your taxable income for the 20XX-XX income 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 tax profit. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au

Relevant facts and circumstances: You do not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the Income Tax Assessment Act 1997 for the 2017-2018 income year. Your business activity is cropping. Your business was substantially impacted by drought and a severe weather event during the income year in question. You project to make a tax profit for the following income year.

Relevant legislative provisions: Income Tax Assessment Act 1997 - Division 35 | Income Tax Assessment Act 1997 – section 35-10 | Income Tax Assessment Act 1997 – section 35-55