Private ruling: The Commissioner's discretion for non-commercial losses
Date of advice: 15 August 2019
Published: October 2019
Ruling period: Year ended 20XX-XX to Year ended 20XX-XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion to allow you to include any losses from your crop farming business in the calculation of your taxable income for the 20XX-XX to 20XX-XX income years? | A1: Yes. It is accepted that in the financial years ruled on, your business activity was affected by special circumstances outside your control which prevented you from passing a test or producing a tax profit. Having considered your circumstances and the relevant factors the Commissioner has granted his discretion. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au

Relevant facts and circumstances: You satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the Income Tax Assessment Act 1997 . You carry on a crop farming business. In 20XX-XX, your business was severely impacted by the unavailability of key personnel due to serious medical conditions and other factors outside of your control. In the other income years ruled on, your business suffered from the effects of extreme weather events. Your projections for income and expenses for the 20XX-XX income year show that the business is expected to make a small profit this 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)(a)