Private ruling: Non-commercial loss: Commissioner's Discretion
Date of advice: 1 June 2017
Published: September 2017
Ruling period: For the year ended 30 June 20YY
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Commissioner exercise the discretion in paragraph 35-55(1)(c) 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 20YY financial year? | A1: Yes Having considered your circumstances, it is accepted that it is the nature of the business activity that has prevented you making a tax profit. It is also accepted that you will make a tax profit within the commercially viable period for your industry. Consequently the Commissioner will exercise his discretion in the 20YY financial year. For more information on non-commercial losses, please visit our website at https://www.ato.gov.au/Business/Non-commercial-losses/, or search quick code QC 33774 at www.ato.gov.au.

Relevant facts and circumstances: You do not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997. You carry on a business at property A and property B. The business is primarily concerned with broad acre grain cropping. You commenced business operations in the 20YY financial year. You have provided independent evidence that attests to a commercially viable period of one year for your industry. You intend to make a tax profit in the 20ZZ financial year. You have provided an interim profit and loss statement which shows your return to profit.

Relevant legislative provisions: Income Tax Assessment Act 1997 Division 35