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Edited version of private advice
Authorisation Number: 1051539150061
Date of advice: 08 July 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 business activity in the calculation of your taxable income for the 20XX financial year?
Answer
Yes.
Having considered your circumstances and the relevant factors the Commissioner has granted discretion. It is accepted there is a 'lead time' in the nature of your business activity and you will make a tax profit within your industry's commercially viable period. 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 did not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997.
You carry on a activity which commenced in the 20XXfinancial year.
In its first year of operation, your business activity failed to produce assessable income greater than its allowable deductions, which has resulted in a tax loss for the financial year.
The business activity has produced a tax profit in the following financial year.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 35-10
Income Tax Assessment Act 1997 section 35-55
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