ATO Issues Practical Compliance Guideline on Discretion to Allow Loss Offset in Special Circumstances Such as Flood, Bushfire, or COVID-19

The Australian Taxation Office (ATO) has issued Practical Compliance Guideline PCG 2022/1 - Non-commercial business losses - Commissioner's discretion regarding flood, bushfire or COVID-19. PCG 2022/1, which is primarily relevant for individuals and partnerships, concerns cases where the ATO Commissioner may exercise their discretion to allow the offset of losses instead of deferring a loss from a business activity to be offset against future income from the same business activity. Such disc…