Private ruling: Non-commercial losses - special circumstances
Date of advice: 20 January 2021
Published: March 2021
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 to allow you to include any losses from your bookkeeping, business coaching and BAS agent advisory services business activity in the calculation of your taxable income for the 20XX-XX financial year? | A1: Yes

Relevant facts and circumstances: You satisfied the less than $250,000 income requirement set out in subsection 35-10(2E) of the Income Tax Assessment Act 1997. You commenced your business activity on XX November 20XX. You did not meet the assessable test in the corresponding financial year. You met the assessable income tests in the 20XX-XX and 20XX-XX financial years. You did not meet the assessable income test in the 20XX-XX financial year due to special circumstances. Private Ruling reference XXX was issued on XX December XX to allow you to include in the calculation of your taxable income the non-commercial loss that resulted from these special circumstances. You again experienced special circumstances during the 20XX-XX financial year. You have continued to experience special circumstances during the first half of the 20XX-XX financial year, so it is to be expected you will not meet the assessable income test for this year. You expect to meet the assessable income test in the 20XX-XX 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) | Income Tax Assessment Act 1997 paragraph 35-55(1)(a)