Private ruling: Non-commercial losses - Commissioner's discretion special circumstances
Date of advice: 14 October 2020
Published: December 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 2019-20 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 passing a test. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au.

Relevant facts and circumstances: You satisfy the less than $250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997. You had a severe work accident resulting in hospitalisation followed by home recovery. When you had recovered sufficiently to conduct your business activity, it was on reduced hours. You were able to achieve business income of approximately $X in a month period. You have met the income test in the financial year 20XX-XX.

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 subsection 35-30(b) | Income Tax Assessment Act 1997 paragraph 35-55(1)(a)