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Edited version of your written advice
Authorisation Number: 1051465657724
Date of advice: 18 December 2018
Ruling
Subject: Commissioner’s discretion for non-commercial business 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 for the 2018 financial 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 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 2018
The scheme commences on:
1 July 2017
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.
You commenced business operations originally in the xxxx financial year but ceased a few years later. The business recommenced in the 2016-17 financial year when you purchased a property and livestock.
Your business was affected by severe drought in the 2017-18 financial year.
Due to the drought you have experienced additional expenses due to the need to continue purchasing feed.
The additional feed cost due to the drought has caused a loss in the business in the 2017-18 financial year.
You have provided cash flow figures that show that the business should make a profit in the 2018-19 financial year.