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Edited version of your written advice
Authorisation Number: 1051494812508
Date of advice: 25 March 2019
Ruling
Subject: Non-commercial losses
Question
Will the Commissioner exercise the discretion in paragraph 35-55(1)(c) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow you to include any losses from your primary production activity in your calculation of taxable income for the 20XX-XX 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-XX financial year.
For more information on non-commercial losses, please visit our website at ato.gov.au and search for quick code QC 33774.
This ruling applies for the following period:
Year ending 30 June 20XX
The scheme commences on
1 July 20XX
Relevant facts and circumstances
Your income for non-commercial loss purposes for the financial year 201X-1X is more than $250,000.
You are carrying on a business (the activity) which commenced in the 201X-1X financial year.
You commenced your business in June 20XX.
You expect to make a profit in the 20XX-XX financial year.
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 35-10(1)
Income Tax Assessment Act 1997 subsection 35-10(2)
Income Tax Assessment Act 1997 subsection 35-10(2E)
Income Tax Assessment Act 1997 paragraph 35-55(1)(c)