Private ruling: Non-commercial losses and the ap plication of the Commissioner’s discretion
Date of advice: 1 May 2019
Published: June 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Will the Commissioner exercise the discretion to allow you to include any losses from your primary production business in the calculation of your taxable income for the 2017-18 financial year? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner has granted his discretion. It is accepted there is a 'lead time' in the nature of your business activity and you will make a tax profit within your industry's commercially viable period. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You carry on a primary production. You started this new venture when you purchased a large number of stock. You will earn a profit when the stock have grown and been sold. You expect to make a tax profit in the 20xx-xx financial year.

Relevant legislative provisions: Income Tax Assessment Act 1997 – Section 35-1 | Income Tax Assessment Act 1997 – Subsection 35-10(2E) | Income Tax Assessment Act 1997 – Subsection 35-55(1) | Income Tax Assessment Act 1997 – Paragraph 35-55(1)(c)