Losses

You can offset film losses carried forward from prior years only against film income. A film loss arises when your film deductions exceed the sum of your assessable film income and your net exempt film income. A film loss cannot be deducted from income other than film income but can be carried forward and deducted from film income in future years. You can carry forward film losses you incurred in 1989-90 and subsequent income years for an unrestricted period.