Private ruling: Non-commercial losses - Commissioner's discretion
Date of advice: 12 August 2020
Published: September 2020
Ruling period: Year ended 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 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 caused you to make a loss. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au

Relevant facts and circumstances: You commenced your business in November 20XX. You left your paid employment in February 20XX to concentrate solely on the business activity. As well as individual sales and classes you provide group workshops, party events and operation of market stalls. Due to XXXX the workshops that you had booked were cancelled. Your business experienced over 17 weeks of cancelled events. Your business produced an overall loss in the financial year.

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)