Private ruling: The Commissioner's discretion for non-commercial losses
Date of advice: 1 June 2019
Published: July 2019
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 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 do not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the Income Tax Assessment Act 1997 . You operate a primary production business activity in partnership with your spouse. In the 20XX financial year, the activity was affected by drought, causing you to expend more on fodder and pasture maintenance. This resulted in the activity producing a loss. The activity produced more than $20,000 in assessable income .

Relevant legislative provisions: Income Tax Assessment Act 1997 section 35-55