Private ruling: Commissioner's discretion - non-commercial losses
Date of advice: 25 March 2021
Published: May 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: Month X 20XX

Ruling: Q1: Will the Commissioner exercise his discretion to allow you to include any losses from your non-primary production business in the calculation of your taxable income for the 20XX-XX 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 Income Tax Assessment Act 1997. You are self-employed. You also work with another industry due to your previous. Your business was operational for less than half a year during the financial year ended 30 June 20XX because you left your previous employment to establish the business and you were on a holiday over a number of months. Covid-19 made it difficult for you to obtain contracting roles. In the most recent period before your private ruling application, you have already invoiced in excess of $XXX.

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