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Edited version of private advice
Authorisation Number: 1051564711790
Date of advice: 12 August 2019
Ruling
Subject: Non-commercial losses lead time
Question
Will the Commissioner exercise the discretion to allow you to include any losses from your business in the calculation of your taxable income for the 2018 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 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 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
The following documents you provided form part of the scheme under consideration:
· your private ruling application
· your business plan
You commenced a primary production business.
You have provided details of your activity including the commencement date, location and scale of operations.
You have provided information to show the commercially viable period for the activity is up to three years.
You state that your primary production business will first make a tax profit in the 2018-2019 income year.
You do not satisfy the income requirement in subsection 35-10(2E) of the Income Tax Assessment Act 1997 (ITAA 1997).
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 35-10 and
Income Tax Assessment Act 1997 Section 35-55.