Private ruling: Commissioner's discretion - non-commercial losses
Date of advice: 6 August 2021
Published: October 2021
Ruling period: Year ending 30 June 20XX
Date scheme commenced: 1July 201XX

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-XX financial year? | A1: Yes Having regard to your full circumstances, it is accepted that your business activity was affected by special circumstances outside your control. It is also accepted that, but for the special circumstances, you would have met one of the four tests. Consequently, the Commissioner will exercise his discretion.

Relevant facts and circumstances: You are a partner in a partnership who has a non-primary production business. You satisfy the less than $250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997. You have been unable to meet the assessable income test due to the impacts of Covid-19 and the ensuing government restrictions. You anticipate you will meet the assessable income test in the 20XX-20XX income year based on the actual income earned for part of the previous income year with a reasonable estimate for the remaining months.

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)


This ruling applies for the following period: