Private ruling: Commissioner's discretion for non-commercial losses
Date of advice: 24 October 2017
Published: March 2018
Ruling period: Year ended 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 (ITAA 1997) to allow you to include any losses from your primary production business activity in your calculation of taxable income for the 20XX 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, and that these prevented you meeting one of the four tests. Consequently the Commissioner will exercise his discretion in the 20XX financial year.

Relevant facts and circumstances: The arrangement that is the subject of the private ruling is described below. This description is based on the following documents. These documents form part of and are to be read with this description. The relevant documents are: ● The application for private ruling received 20XX ● Further information received 20XX You satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997. You carry on a business at an industrial shed. You are also employed on a full-time basis and operate the business in your time off from your main employment. You were affected by special circumstances in the 20XX financial year. The special circumstances impacted on your activity in the following ways: ● You were hospitalised; ● You were required to have time off from your main employment and your activity; ● Once you returned to your main employment, you were unable to operate your activity as you had previously, owing to specialist appointments you were required to attend and being unfit to operate the activity. You intend to make more than $20,000 in assessable income in the 20XX financial 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) and | Income Tax Assessment Act 1997 subsection 35-55(1)(a).


The advice in the Register has been edited and may not contain all the factual details relevant to each decision. Do not use the Register to predict ATO policy or decisions.