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Non-commercial losses – supporting information

Information to supply for a private ruling or objection on the Commissioner's discretion for non-commercial losses.

Last updated 30 July 2017

Here's a list of the documents and information we need to process a private ruling request which is requesting that the Commissioner exercise the discretion to allow a loss from non-commercial activities. If you provide supporting information this will reduce the time it takes us to process your request.

If you want to apply for a private ruling about non-commercial losses, you need to:

See also  

Supporting information

Note: If you've previously provided us with any of the information listed below, you don't need to provide it again.

The information we need for a private ruling requesting the Commissioner exercise the discretion to allow a loss from non-commercial activities includes:

  • your income for non-commercial loss purposes
  • whether you are carrying on a business activity, and if so when it commenced
  • when you expect to make a tax profit in your business activity
  • whether the loss arose solely because of the deductions for the small business and general business tax break
  • a business plan
  • whether the reason you did not make a tax profit is due to the nature of the business activity you are conducting, and if so
    • if that reason is a feature that other businesses of this type in your industry have in common with your business
    • 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.

Your ruling request will require evidence from independent sources, and you should attach all relevant evidence and indicate the source of the evidence, for example industry bodies, tertiary institutions, business advisers, banks.

The evidence you provide should show:

  • a commercially viable period of time (for the industry concerned) for a tax profit to be produced
  • current or projected yield and price forecasts for the goods or services that the business activity produces
  • suitability of your business activity to its location (such as soil and climate conditions, markets and transport requirements).

Where possible, you should also include:

  • industry articles, statistics, analyses, scientific research or other papers on the relevant industry that support the proposals or projections in your business plan
  • a copy of any advice from an independently qualified source that has the relevant skills and experience in relation to your particular industry.

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