• Non-commercial losses: evidentiary checklist

    This checklist must be attached to your Application for a private ruling on the exercise of the Commissioner's discretion for non-commercial losses (NAT 5806).





    Income requirement

    Is your income for non-commercial loss purposes $250,000 or more?


    Business activity

    Are you carrying on a business activity?


    When did your business activity commence?


    In which year do you expect to make a tax profit in your business activity?


    Investment allowance

    Did the loss arise solely because of the deductions for the small business and general business tax break?


    Business plan

    Have you included a business plan?


    Nature of the activity

    Is the reason you did not make a tax profit due to the nature of the business activity you are conducting?


    Is that reason a feature that other businesses of this type in your industry have in common with your business?


    Have you provided evidence that supports your claim that it's because of the nature of the business that you did not make a tax profit for the relevant year?


    Evidence from independent source

    Have you included a copy of all relevant evidence from independent sources?


    Does the evidence from the independent source provide a commercially viable period of time for the industry concerned when a tax profit will be produced?


    Have you provided evidence of your current or projected yield and price forecasts for the goods or services that the business activity produces?


    Have you provided industry articles, statistics, analyses, scientific research or other papers on the relevant industry that support the proposals or projections in your business plan?


    Have you provided evidence on the suitability of your business activity to its location (such as soil and climate conditions, markets and transport requirements)?


    Have you included a copy of advice from an independently qualified source that has the relevant skills and experience in relation to your particular industry?


    Tick which independent sources your evidence is from:

    Industry bodies or associations


    Tertiary institutions


    Industry specialists


    Professional and trade associations


    Government agencies


    Other independent individuals or entities with similar successful business activity


    Business advisers






    Other - please provide details:


    Further Information

    For more information about:

    End of further information
    Last modified: 14 Sep 2016QC 22624