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Edited version of private advice
Authorisation Number: 1051811853296
Date of advice: 3 March 2021
Ruling
Subject: Commissioner's discretion for non-commercial losses
Question
Will the Commissioner exercise the discretion to allow you to include any losses from your business in the calculation of your taxable income for the 20XX-XX financial year?
Answer
Yes
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
Your income for non-commercial loss purposes was under $250,000 for the 20XX-XX financial year.
You carry on a business that provides its services to primary producers. The business commenced on XX/XX/XXXX.
Due to the ongoing drought, the primary producers that your business provides its services to have not been able to plant and harvest their usual quantity of crops. This has resulted in a reduction in demand for your contracting services.
Your business operations have been predominantly profitable until the onset of the drought.
Demand for your contracting services for the 20XX-XX financial year has returned to normal levels.
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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