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Tax losses record keeping

Last updated 12 July 2020

If a superannuation fund incurs tax losses, the fund may need to keep records longer than five years from the date when the losses were incurred.

Generally you can carry forward tax losses incurred this year indefinitely, until they are applied by recoupment. When applied, the loss amount is a figure that leads to the calculation of the superannuation fund's taxable income in that year.

It is in the superannuation fund's interest to keep records substantiating that year's losses until the amendment period for the assessment in which the losses are applied has lapsed (in most cases up to four years from the date of that assessment) - see TD 2007/2 Income Tax: should a taxpayer who has incurred a loss or made a net capital loss for an income year retain records relevant to the ascertainment of that loss for only the record retention period prescribed under income tax law?

QC20485