Write at M the tax losses the fund is claiming; this amount is equal to the fund's tax losses brought forward less the amount of the fund's net exempt income (section 36-15 of the ITAA 1997). The fund's net exempt income is the fund's gross exempt income less the expenses incurred in deriving that income.
Do not include net capital losses at M. See V Net capital losses carried forward to later income years at item 13.
Domestic losses can be used to offset foreign source income. The trustee of the fund makes an election and keeps it with the fund's tax records. Foreign source losses may be deducted against foreign source income of the same class.
For more information, see the Foreign income return form guide.
Changes enacted in the Tax Laws Amendment (2007 Measures No. 4) Act 2007 about removing the quarantining of foreign losses do not affect this tax return - see What's new?
The trust loss legislation in Schedule 2F to the ITAA 1936 affects the deductibility of prior year losses by all trusts which are not excepted trusts (as defined in section 272-100 of Schedule 2F to the ITAA 1936), such as non-complying superannuation funds.
The fund may need to complete and attach a Losses schedule 2008 to its tax return - see Schedules and the Losses schedule instructions 2008.