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Edited version of your written advice
Authorisation Number: 1051493160065
Date of advice: 15 March 2019
Ruling
Subject: Non-commercial losses – Commissioner’s discretion
Question
Will the Commissioner exercise the discretion in section 35-55 of the Income Tax Assessment Act 1997 (ITAA 1997) to allow you to include any losses from your primary production business activity in your calculation of taxable income for the 2017-2018 financial year?
Answer
Yes.
Having considered your circumstances and the relevant factors the Commissioner has granted his discretion. Your activity was impacted by special circumstances. Also, it is accepted that there is a 'lead time' in the nature of your business activity and you will 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 period:
Year ended 30 June 2018
The scheme commences on:
1 July 2017
Relevant facts and circumstances
You operate a livestock farming activity.
You first acquired livestock for the activity in 2017.
Your activity was impacted by drought during the 2017-18 financial year.
You project that you will make a profit in the 2018-19 financial year.
You do not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997 for the 2017-2018 financial 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