Private ruling: Non-commercial losses lead time
Date of advice: 12 August 2019
Published: October 2019
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Will the Commissioner exercise the discretion to allow you to include any losses from your business in the calculation of your taxable income for the 2018 financial year? | 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 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: The following documents you provided form part of the scheme under consideration: · your private ruling application · your business plan You commenced a primary production business. You have provided details of your activity including the commencement date, location and scale of operations. You have provided information to show the commercially viable period for the activity is up to three years. You state that your primary production business will first make a tax profit in the 2018-2019 income year. You do not satisfy the income requirement in subsection 35-10(2E) of the Income Tax Assessment Act 1997 (ITAA 1997).

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 35-10 and | Income Tax Assessment Act 1997 Section 35-55.