Consolidated or multiple entry consolidated (MEC) groups
Any company that is a subsidiary member of a consolidated or MEC group at the end of 2023–24 is not required to complete item 13 – labels U and V. Other companies, including the head company of a consolidated or MEC group at the end of 2023–24, may need to complete item 13 – labels U and V.
U – Tax losses carried forward to later income years
Write at item 13 – label U the unapplied (undeducted or not transferred) amount of tax losses incurred by the company and carried forward to a later income year under section 36-17 of the ITAA 1997.
If the company is a designated infrastructure project (DIP) entity, ensure the amount of tax losses carried forward to later income years include any uplift amount. Net exempt income (if any) must be taken into account in calculating the amount of tax losses carried forward to a later income year, see sections 36-10 and 36-17 of the ITAA 1997.
Tax losses carried forward may be affected by the commercial debt forgiveness provisions, see Appendix 5.
Under sections 36-17 and 36-55 of the ITAA 1997, a company is, subject to certain limitations, able to choose the amount of prior year tax losses it wishes to deduct in a later year of income from the excess (if any) of its assessable income over total deductions (other than tax losses). This choice means that companies can choose not to deduct prior year losses in order to pay sufficient tax to be able to frank their distributions. In certain circumstances, a company is able to convert excess franking offsets into a tax loss for the income year and carry forward the tax loss for consideration as a deduction in a later income year. If the company has excess franking offsets at item 8 – label H Excess franking offsets, calculate the company’s tax loss for the income year under the method statement in subsection 36-55(2) of the ITAA 1997 as follows:
- Work out the amount (if any) that would have been the company’s tax loss for the year under section 36-10, 165-70, 175-35 or 701-30 of the ITAA 1997, disregarding any net exempt income.
- Divide the amount of excess franking offsets by the applicable corporate tax rate.
- Add the result of steps 1 and 2.
- Subtract the company’s net exempt income (if any).
The result (if a positive amount) is the company’s tax loss for the income year. Include this amount at label U with any unapplied tax losses from prior income years.
If you are required to complete a Losses schedule 2024, the amount of the tax losses you show at item 1 Tax losses carried forward to later income years – label U Total in part A of that schedule must be the same as the amount you show at label U in the Company tax return 2024.
Don't include any net capital losses to be carried forward to later income years at label U. Show these separately at:
- item 13 – label V Net capital losses carried forward to later income years on the Company tax return 2024
- Capital gains tax schedule 2024, if a capital gains tax (CGT) schedule is required.
Consolidated or MEC groups
If a head company of a consolidated or MEC group is required to complete a Consolidated groups losses schedule 2024, the amount of the tax losses shown at item 5 Tax losses carried forward to later income years – label U Total in part A of that schedule must be the same as the amount shown at label U in the Company tax return 2024.
If the company is a subsidiary member of a consolidated or MEC group at the end of the income year, label U is not applicable.
V – Net capital losses carried forward to later income years
Write at item 13 – label V the total of any unapplied net capital losses from collectables and unapplied net capital losses from all other CGT assets and events. This information is calculated or transferred from:
- 3B in table 5 and 3A in table 9 of the CGT summary worksheet for 2024 tax returns
- A and B in part 3 of the CGT schedule, if a CGT schedule is required.
For more information, see Guide to capital gains tax 2024.
If the company is required to complete a Losses schedule 2024, the amount of the net capital losses shown at item 2 Net capital losses carried forward to later income years – label V Total in part A of that schedule must also be the same as the amount shown at label V on the Company tax return 2024.
Consolidated or MEC groups
If a head company of a consolidated or MEC group is required to complete a Consolidated groups losses schedule 2024, the amount of the net capital losses shown at item 10 Net capital losses carried forward to later income years – label V Total in part A of that schedule must also be the same as the amount shown at label V on the company tax return.
If the company is a subsidiary member of a consolidated or MEC group at the end of the income year, label V is not applicable.
Continue to: 14 Personal services income
Return to: Instructions to complete the Company tax return 2024