Private ruling: Non-commercial losses - Commissioner's discretion - lead time
Date of advice: 7 July 2021
Published: September 2021
Ruling period: Period ended 30 June 20XX | Period ended 30 June 20XX | Period ending 30 June 20XX | Period ending 30 June 20XX | Period ending 30 June 20XX | Period ending 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion in paragraph 35-55(1)(b) of the Income Tax Assessment Act 1997 to allow you to include any losses from your business activities in the calculation of your taxable income for the 20XX to 20XX income years? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner has granted his discretion. It is accepted there is a 'lead time' in the nature of your business activity and you will pass a test or make a tax profit within your industry's commercially viable period.

Relevant facts and circumstances: You are a sole trader in a joint venture with your sibling managing a XXXX orchard. You planted XXXX trees in 20XX on the orchard. XXXX trees take several years to bear XXXX. You travel to the orchard several times per year to establish and maintain the orchard. Your sibling performs activities at the orchard when required. Additional labour is contracted as required. Due to the nature of the activity, you are not expecting a tax profit until the 20XX income year Your income for non-commercial purposes is less than $250,000.

Relevant legislative provisions: Section 35-10 of the Income Tax Assessment Act 1997 | Section 35-55 of the Income Tax Assessment Act 1997


This ruling applies for the following periods: