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Edited version of private advice
Authorisation Number: 1051534074551
Date of advice: 10 September 2019
Ruling
Subject: The Commissioner's discretion for non-commercial losses
Question
Will the Commissioner exercise the discretion to allow you to include any losses from your business activity in the calculation of your taxable income for the 20XX financial year?
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 period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You acquired land in the 20XX financial year. This land was used for private purposes for each of the financial years from 20XX to 20XX.
In 20XX you applied for a planning permit to develop the land you possessed. Approval of this permit was granted in 20XX.
In 20XX, you obtained a building permit to commence business activity.
You commenced work on the land in 20XX.
You do not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997.
You commenced business operations in the 20XX financial year.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 35-10.
Income Tax Assessment Act 1997 section 35-55.