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This edited version has been archived due to the length of time since original publication. It should not be regarded as indicative of the ATO's current views. The law may have changed since original publication, and views in the edited version may also be affected by subsequent precedents and new approaches to the application of the law.

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Edited version of your written advice

Authorisation Number: 1051286935112

Date of advice: 27 September 2017

Ruling

Subject: Non-commercial losses and Commissioner's discretion for special circumstances

Question 1

Will the Commissioner exercise the discretion in paragraph 35-55(1)(a) of the ITAA 1997 to allow you to include any losses from your business activity in your calculation of taxable income for the 2016-17 financial year?

Answer

Yes

Having regard to your full circumstances, it is accepted that your business activity was affected by special circumstances outside your control. Consequently the Commissioner will exercise his discretion in the 2016-17 financial year.

For more information on non-commercial losses, please visit our website ato.gov.au and enter quick code QC 33774 into the search bar at the top right of the page.

This ruling applies for the following period:

Year ended 30 June 2017

The scheme commences on:

1 July 2016

Relevant facts and circumstances

You satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997.

You carry on a business.

The business is primarily concerned with marketing and sales.

You commenced business operations in the 2015-16 financial year.

You submit that you were affected by special circumstances, being a chronic illness in the 2016-17 financial year.

You have submitted the following evidence to substantiate your claim:

You submit that the special circumstances impacted on your business in the following ways:

You will make a profit/make $20,000 in assessable income in the 2017-18 financial year.

Relevant legislative provisions

Income Tax Assessment Act 1997 subsection 35-10(1),

Income Tax Assessment Act 1997 subsection 35-10(2),

Income Tax Assessment Act 1997 subsection 35-10(2E) and

Income Tax Assessment Act 1997 paragraph 35-55(1)(a).

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