Private ruling: Non-commercial losses
Date of advice: 26 April 2021
Published: June 2021
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion to allow you to include any losses from your primary production business in your calculation of taxable income for the relevant financial year? | A1: Yes. Having considered your circumstances and the relevant factors the Commissioner has granted the discretion. It is accepted that your business activity was affected by special circumstances outside your control which caused you to make a loss. Further information on the 'Commissioner's discretion - special circumstances' can be found by searching 'QC 33774' on ato.gov.au.

Relevant facts and circumstances: You started your business activity several years ago. You run a primary production business activity on a large farm. You provided the size of the property and its location. You met the assessable income test in the year before the relevant period. You provided the details of your activity and the turnover sales in a year with normal seasonal conditions. Your business activity local area being in severe drought for several years, you have been forced to sell your stock earlier than anticipated and at a lower sale price and you had higher expenses. You expect your business activity to make a profit next year. You provided a letter from a professional livestock agent, confirming that there is a time lag between the primary production commencing and the business turning a profit depending on the type of enterprise and the weather conditions. You provided details of your projected income and expenses for the relevant year.

Relevant legislative provisions: Income Tax Assessment Act 1997 - Section 35-1 | Income Tax Assessment Act 1997 - Section 35-55