Private ruling: Non-commercial losses and the Commissioner’s discretion
Date of advice: 21 December 2017
Published: May 2018
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 5 June 20XX

Ruling: Q1: Will the Commissioner exercise the discretion in paragraph 35-55(1)(c) of the Income Tax Assessment Act 1997 (ITAA 1997) for your activity in the 20XX financial year? | A1: Yes. Having regard to your full circumstances, it is accepted that it is in the nature of the business activity that has prevented you making a tax profit. It is also accepted that you will make a tax profit within the commercially viable period for your industry. Consequently the Commissioner will exercise his discretion in the 20XX financial year.

Relevant facts and circumstances: You do not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997. You carry on a business activity which commenced on 20XX. Your assessable income was not greater than your allowable deductions for the 20XX financial year. You project that your assessable income will be greater than your allowable deductions for the 20XX financial year.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 35-10 | Income Tax Assessment Act 1997 section 35-55