– A taxpayer claiming tax losses?
At a glance:
– The Tax Office has set out rules on how to treat tax losses correctly.
– Ensure that tax losses are calculated and applied correctly.
– Contact us if you require any clarification or advice.
A tax loss arises when allowable deductions exceed assessable income for any particular income year.
Tax is not payable on taxable losses – instead, the loss may be carried forward to future income years to reduce future years’ assessable income.
Taxable losses must first be applied against any net exempt income before being carried forward.
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– A tax loss can only be carried forward if there is any excess after applying it against net exempt income and current year assessable income.
This article was published on 30/10/2016 and is current as at that date
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