Private ruling: Non-commercial losses
Date of advice: 27 November 2019
Published: February 2020
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 June 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: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You started your business. You earnt more than $250,000 in assessable income for the financial year. You incurred losses for the financial year. Independent sources indicate a period of more than 12 months is a reasonable lead time in this industry to occur before earning any assessable income. You are expecting to have assessable income in excess of $20,000 per annum from 20XX financial year onwards.

Relevant legislative provisions: Income Taxation Assessment Act 1997 section 35-10 | Income Taxation Assessment Act 1997 section 35-30 | Income Taxation Assessment Act 1997 section 35-35 | Income Taxation Assessment Act 1997 section 35-40 | Income Taxation Assessment Act 1997 section 35-45 | Income Taxation Assessment Act 1997 section 35-55