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Edited version of your written advice
Authorisation Number: 1051451761339
Date of advice: 8 November 2018
Ruling
Subject: Non-commercial losses and the exercise of the Commissioner’s discretion
Question
Will the Commissioner exercise the discretion to allow you to include any losses from your crop growing business in the calculation of your taxable income for the 20XX-XX income year?
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 prevented you from making a tax profit. 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 XXXX
The scheme commences on:
1 July XXXX
Relevant facts and circumstances
You do not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the Income Tax Assessment Act 1997 for the 2017-2018 income year.
Your business activity is cropping.
Your business was substantially impacted by drought and a severe weather event during the income year in question.
You project to make a tax profit for the following income year.
Relevant legislative provisions
Income Tax Assessment Act 1997 - Division 35
Income Tax Assessment Act 1997 – section 35-10
Income Tax Assessment Act 1997 – section 35-55