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Edited version of your written advice
Authorisation Number: 1051300838943
Date of advice: 21 December 2017
Ruling
Subject: Non-commercial losses and the Commissioner’s discretion
Question
Will the Commissioner exercise the discretion in paragraph 35-55(1)(c) of the Income Tax Assessment Act 1997 (ITAA 1997) for your activity in the 20XX financial year?
Answer
Yes.
Having regard to your full circumstances, it is accepted that it is in the nature of the business activity that has prevented you making a tax profit. It is also accepted that you will make a tax profit within the commercially viable period for your industry. Consequently the Commissioner will exercise his discretion in the 20XX financial year.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on:
5 June 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 activity which commenced on 20XX.
Your assessable income was not greater than your allowable deductions for the 20XX financial year.
You project that your assessable income will be greater than your allowable deductions for the 20XX financial year.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 35-10
Income Tax Assessment Act 1997 section 35-55