Private ruling: Non-commercial losses
Date of advice: 3 October 2017
Published: February 2018
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the non-commercial loss provisions under Division 35 of the Income Tax Assessment Act 1997 apply to defer your losses for the year ending 20XX? | A1: No.

Relevant facts and circumstances: The arrangement that is the subject of the private ruling is described below. This description is based on the following documents. These documents form part of and are to be read with this description. The relevant documents are: ● The application for private ruling received 20XX. You satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997. You carry on a business. You commenced business operations in the 20XX financial year. The following amounts as included as assessable in the financial statements for the year ended 20XX for your primary production business activity: ● Sale of cattle - $XXXX (exclusive of GST); ● Sale of goats - $XXXX (exclusive of GST); ● Sale of depreciating assets resulting in an assessable balancing adjustment - $XXXX (exclusive of GST); ● Sale of surplus fencing equipment/materials - $XXXX (exclusive of GST); ● Sale of timber cleared from the land to make way for grazing - $XXXX (exclusive of GST). The total of these amounts more than $20,000. After reviewing the facts and circumstances of this particular case, we are satisfied that the business activity passes the assessable income test in section 35-30 of the Income Tax Assessment Act 1997 . More information on non-commercial losses can be found on the ato.gov.au website.

Relevant legislative provisions: Ruling Legislation