Private ruling: Non-commercial losses - assessable income test
Date of advice: 13 December 2021
Published: March 2022
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Do you satisfy the assessable income test set out in section 35-50 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: Yes. Having considered your circumstances and the relevant facts, it would be reasonable to estimate that had you carried on the business activity for the full year, you would have achieved income greater than $20,000. Therefore, you are considered to have met the assessable income test and will be able to include any losses from your business activity in the calculation of your taxable income for the 20XX-20XX financial year. Further information on non-commercial losses can be found by searching QC 33774 on ato.gv.au.

Relevant facts and circumstances: You were in business for less than a year. You satisfy the less than $250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997. Your income was $X. You estimate that your income would have been $X had you carried on the business activity for the full year.

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 35 | Income Tax Assessment Act 1997 subsection 35-10(2E) | Income Tax Assessment Act 1997 section 35-50