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Edited version of private advice
Authorisation Number: 1052056727110
Date of advice: 10 November 2022
Ruling
Subject: Commissioner's discretion for non-commercial loss - lead time
Question
Will the Commissioner exercise the discretion in paragraph 35-55(1)(b) of the Income Tax Assessment Act 1997 (ITAA 1997) to allow you to include any losses from your business activity in your calculation of taxable income for the 20XX-XX and 20XX-XX financial years?
Answer
Yes.
This ruling applies for the following periods:
1 July 20XX to 30 June 20XX
1 July 20XX to 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You satisfy the under $250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997.
You carry on a lighting manufacturing business.
You commenced business in the 20XX-XX financial year.
The lighting requires a process of modifying and certifying the products to meet Australian standards and then manufacturing the product.
You expect to meet the assessable income test in the 20XX-XX financial 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)(b)