Private ruling: Commissioner's discretion
Date of advice: 4 June 2026
Published: 17 August 2026
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion in paragraph 35-55(1)(a) of the Income Tax Assessment Act 1997 to allow you to include the loss from your business activity in the calculation of your taxable income for the year ended 30 June 20XX? | A1: Yes.

Relevant facts and circumstances: 1. You have locations where you operate the business activity. 2. The business commenced on DD MM YYYY. 3. During 20XX, the business faced losses as a result of required renovations due to factors outside your control. 4. The renovations were required as the business is still dealing with the slow recovery from these factors. 5. The renovations were completed and during this time there was a significant downturn in trade. 6. The renovations were undertaken to increase patronage. 7. An unprofitable location in 20XX was sold and the renovated location has since seen an increase in sales. 8. You made a loss of $XXX in 20XX as a result of increased costs due to the renovations. 9. As at MM YYYY, the business is trading at a small profit and expects a profitable result in 20XX. 10. In the 20XX income year, your income for non-commercial loss purposes exceeded $X. 11. In the 20XX income year, the business produced assessable income of at least $20,000. 12. You use property worth at least $X in conducting the business activity. 13. You use assets with a value of at least $X in conducting the business activity.

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 35 | Income Tax Assessment Act 1997 subsection 35-10 | Income Tax Assessment Act 1997 subsection 35-10(2E) | Income Tax Assessment Act 1997 subsection35-10(4) | Income Tax Assessment Act 1997 section 35-30 | Income Tax Assessment Act 1997 section 35-35 | Income Tax Assessment Act 1997 section 35-40 | Income Tax Assessment Act 1997 section 35-45 | Income Tax Assessment Act 1997 paragraph 35-55(1)(a)