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Edited version of private advice
Authorisation Number: 1051711234935
Date of advice: 07 July 2020
Ruling
Subject: Non-commercial losses - Commissioner's discretion - special circumstances
Question
Answer
Yes. Having considered your circumstances and the relevant factors the Commissioner has granted his discretion. It is accepted that your business activity was affected by special circumstances outside your control which caused you to make a loss. Further information on the 'Commissioner's discretion - special circumstances' can be found by searching 'QC 61248' on ato.gov.au
This ruling applies for the following period
Year ended 30 June 2019
Year ended 30 June 2020
The scheme commenced on
1 July 2018
Relevant facts and circumstances
You have operated a primary production business activity since 20XX.
The business has only been able to produce limited crops in both the 2018-19 and 2019-20 financial years due to extended drought conditions in the region, resulting in a loss
The business activity produced a profit in the 2016-17 and 2017-18 financial years prior to the drought.
Your income for non-commercial loss purposes was over $250k in the 2018-19 and 2019-20 financial years.
You expect the business activity to become profitable again 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)(a).