Private ruling: Non-commercial losses - special circumstances
Date of advice: 22 April 2020
Published: June 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 primary production business in the calculation of your taxable income for the 20YY-YY 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 operate a primary production business. You lost your crop in the 20YY-YY financial year due to frost. You provided projected profit and loss figures which indicated that the activity would have passed the $20,000 assessable income test 20YY-YY financial year if you had not lost the crop. Your agronomist provided a report to outline the impact of the frost event on your property. As recommended you have implemented frost mitigation measures on your property.

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 paragraph 35-55(1)(a)