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Edited version of your written advice
Authorisation Number: 1051498974401
Date of advice: 03 April 2019
Ruling
Subject: Non-commercial losses
Question
Will the Commissioner exercise the discretion to allow you to include any losses from your primary production business activity in the calculation of your taxable income for the 2017-18 to 2019-20 financial years?
Answer
Yes.
Having considered your circumstances and the relevant factors the Commissioner has granted the discretion. It is accepted 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 periods:
Year ended 30 June 2018
Year ending 30 June 2019
Year ending 30 June 2020
The scheme commenced on:
01 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.
In the 2016-17 financial year you commenced a new primary production business activity.
You have provided projections for income and expenses that show that you expect this activity to produce a tax profit in the 2020-21 financial year.
Relevant legislative provisions
Income Tax Assessment Act 1997 – Section 35-1
Income Tax Assessment Act 1997 – Subsection 35-10(2E)
Income Tax Assessment Act 1997 – Subsection 35-55(1)
Income Tax Assessment Act 1997 – Paragraph 35-55(1)(c)