Private ruling: NCL discretion - lead time - >$250 - vineyard
Date of advice: 15 July 2025
Published: 22 September 2025
Ruling period: 1 July 2020 to 30 June 2024
Date scheme commenced: 1 July 2020

Ruling: Q1: Will the Commissioner exercise the discretion in paragraph 35-55(1)(c) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow you to include any losses from your business activity in your calculation of taxable income for the 2020-21 to 2023-24 financial years? | A1: Yes Having regard to your full circumstances, it is accepted that it is the nature of the business activity that has prevented you from 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 relevant years.

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 primary production activity. You commenced business operations in a particular financial year. You have completed appropriate training, educational activities and sought expert assistance and consultation from various experts in the field. You employ full-time staff. Independent evidence that attests to a commercially viable periodfor your industry was provided. You provided key milestones for your activity and the actual and projected financial information for your activity. The inherent feature of your activity that results in a time delay before achieving a tax profit was explained and expert supporting evidence was provided. You expect your business activity to make a profit in the 2025-26 financial year.

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)(c)