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Edited version of private advice
Authorisation Number: 1051566778746
Date of advice: 15 August 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 crop farming business in the calculation of your taxable income for the 20XX-XX to 20XX-XX income years?
Answer
Yes.
It is accepted that in the financial years ruled on, your business activity was affected by special circumstances outside your control which prevented you from passing a test or producing a tax profit. Having considered your circumstances and the relevant factors the Commissioner has granted his discretion. 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 20XX-XX to Year ended 20XX-XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the Income Tax Assessment Act 1997.
You carry on a crop farming business.
In 20XX-XX, your business was severely impacted by the unavailability of key personnel due to serious medical conditions and other factors outside of your control.
In the other income years ruled on, your business suffered from the effects of extreme weather events.
Your projections for income and expenses for the 20XX-XX income year show that the business is expected to make a small profit this 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)(a)