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Edited version of private advice
Authorisation Number: 1051820872530
Date of advice: 25 March 2021
Ruling
Subject: Commissioner's discretion - non-commercial losses
Question
Will the Commissioner exercise his discretion to allow you to include any losses from your non-primary production business in the calculation of your taxable income for the 20XX-XX financial year?
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 prevented you from passing a test. 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:
Month X 20XX
Relevant facts and circumstances
You satisfy the less than $250,000 income requirement set out in subsection 35-10(2E) of the Income Tax Assessment Act 1997.
You are self-employed.
You also work with another industry due to your previous.
Your business was operational for less than half a year during the financial year ended 30 June 20XX because you left your previous employment to establish the business and you were on a holiday over a number of months.
Covid-19 made it difficult for you to obtain contracting roles.
In the most recent period before your private ruling application, you have already invoiced in excess of $XXX.
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 subsection 35-30(a)
Income Tax Assessment Act 1997 paragraph 35-55(1)(a)