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  • No product ruling

    An individual may have entered into an agribusiness managed investment scheme (MIS) for which there is no product ruling. Accordingly, most participants in such an MIS are prevented from claiming the MIS business losses against other assessable income in the year the business losses are incurred.

    Instead, participants must defer those losses until either:

    • the MIS business makes a profit in a following year, when some or all of the deferred loss can be offset against this profit up to the amount of the profit
    • a participant meets the income requirement and the MIS business passes one of the four tests in a following year, when deferred losses can be claimed against other income.

    The responsible entity may apply on behalf of participants, or potential participants, in their MIS for a ruling on the application of the non-commercial loss rules to those participants.

    If the MIS has already commenced, we will consider issuing a product ruling on the non-commercial losses provisions. However, the MIS must still be fully described in the application for a product ruling, and we will need to be able to conclude that the deductions in question are otherwise allowable.

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      Last modified: 01 Aug 2017QC 16137