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Edited version of private advice
Authorisation Number: 1052378991485
Date of advice: 28 March 2025
Ruling
Subject: Commissioner's discretion - non-commercial losses
Question 1
Will the Commissioner exercise the discretion in paragraph 35-55(1)(a) 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 financial year?
Answer 1
Yes. Having regard to your full circumstances, it is accepted that your business activity was affected by special circumstances outside your control and that these prevented you from making a tax profit. Consequently, the Commissioner will exercise his discretion in the 20XX financial year.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
You do not satisfy the <$250,000 income requirement set out in subsection 35-10(2E) of the ITAA 1997.
You carry on a cattle and grain farming primary production business.
You commenced a sole trader business operation in the 20XX financial year.
In the 20XX financial year special circumstances impacted the profitability of your business activity.
Your business was impacted in the following ways:
• vestock sales were made in the 20XX financial year
• ok significant time to bring cattle stock up to a saleable weight
Relevant legislative provisions
Income Tax Assessment Act 1997 subsection 35-10
Income Tax Assessment Act 1997 paragraph 35-55(1)(a)