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Edited version of your written advice
Authorisation Number: 1051484536271
Date of advice: 20 March 2019
Ruling
Subject: Non-commercial loss
Question
Will the Commissioner exercise the discretion to allow you to include any losses from your forestry activity business in the calculation of your taxable income for the 20XX-XX to 20XX-XX financial years?
Answer
Yes. Having considered your circumstances and the relevant factors the Commissioner has granted his discretion. It is accepted there is a 'lead time' in the nature of your business activity and you will pass a test or 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 periods:
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
Year ending 30 June 20XX
The scheme commences on:
XX
Relevant facts and circumstances
Your activity is forestry, and you purchased a property for the sole purpose of primary production.
You have two paddocks, paddock one has XX with expected clear-felling after 25 years, and paddock two with high value timbers and expected clear-felling between 40 and 80 years.
You have updated your business plan, and your expected clear-felling of the trees are on schedule for year 20XX.
Relevant legislative provisions
Income Taxation Assessment Act 1997 section 35-55
Income Taxation Assessment Act 1997 paragraph 35-55(1)(b)