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Edited version of your written advice
Authorisation Number: 1051471336043
Date of advice: 8 January 2019
Ruling
Subject: The Commissioner’s discretion for non-commercial losses
Question
Will the Commissioner exercise the discretion to allow you to include any losses from your primary production business in the calculation of your taxable income?
Answer
Yes.
Having considered your circumstances and the relevant factors the Commissioner has granted his discretion. It is accepted that your business activity was affected by special circumstances outside your control which caused you to make a loss. Further information on non-commercial losses can be found by searching 'QC 33774' on ato.gov.au
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
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 which is primarily concerned with breeding livestock for sale.
You commenced business operations.
The area was affected by drought conditions.
You incurred deductible expenditure. This included additional expenditure for fencing, weed and pest control in order to make more pastures available to mitigate the effects of the drought.
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)
Income Tax Assessment Act 1997 paragraph 35-55(1)(a)
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