Private ruling: The Commissioner's discretion for non-commercial losses
Date of advice: 8 July 2019
Published: October 2019
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 business activity in the calculation of your taxable income for the 20XX financial year? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner has granted discretion. It is accepted there is a 'lead time' in the nature of your business activity and you will make a tax profit within your industry's commercially viable period. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au

Relevant facts and circumstances: You did not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997. You carry on a activity which commenced in the 20XXfinancial year. In its first year of operation, your business activity failed to produce assessable income greater than its allowable deductions, which has resulted in a tax loss for the financial year. The business activity has produced a tax profit in the following financial year.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 35-10 | Income Tax Assessment Act 1997 section 35-55