Are you?
– A taxpayer claiming tax losses?
At a glance:
– The Tax Office has set out rules on how to treat tax losses correctly.
You should:
– 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.
For more information, click here.
Remember:
– 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
This article is not a substitute for independent professional advice. We do not warrant the accuracy, completeness or adequacy of the information or material in this article. All information is subject to change without notice. We and each party providing material displayed in this article disclaim liability to all persons or organisations in relation to any action(s) taken on the basis of currency or accuracy of the information or material, or any loss or damage suffered in connection with that information or material. You should make your own enquiries before entering into any transaction on the basis of the information or material in this article. Please ensure you contact us to discuss your particular circumstances and how the information provided applies to your situation.
