TR 2019/1 – When Does a Company Carry on a Business?
Ruling Code: TR 2019/1 · Published: 5 April 2019
Cassandra Research editorial team
Research methodology: Check the applicable legislation, ATO guidance and court decisions against primary sources for the relevant period.
Executive Summary
TR 2019/1 explains the ATO's approach to deciding whether a company conducts a business for specified small-business provisions.
What This Ruling Addresses
The scope covers companies incorporated under the Corporations Act 2001, excluding companies limited by guarantee and activities undertaken as a trustee.
Legislative Framework
Section 328-110 of the ITAA 1997 and section 23 of the Income Tax Rates Act 1986 for the 2015–16 and 2016–17 income years.
Detailed Explanation
The decision depends on the overall facts. Relevant considerations include profit purpose, the activities undertaken, regularity, organisation and scale. Applying another provision requires checking its particular scope.
Practical Interpretation
Overview checked against ATO consolidated text on 19 October 2026; live currency could not be confirmed. Before use, check the official database for status, amendments and applicable version. Record the company's capacity, relevant income year, facts and supporting paragraphs in the review file.
Worked Examples
Verification workflow: for an investment company, compare its facts with the ATO's own examples and document differences before reaching a conclusion.
Common Misconceptions
- ✗A business finding automatically satisfies every condition for a tax concession.
- ✗This is a general ordinary-income ruling for all taxpayers.
Official Sources and Review
Overview reviewed: 19 October 2026. Confirm the current ruling status and applicable version before relying on this overview.
Frequently Asked Questions
Does the ruling determine concession eligibility?
No. Other statutory conditions require separate consideration.
When was TR 2019/1 issued?
5 April 2019. The ATO history records an erratum dated 4 September 2019; check the database for subsequent changes.
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