Deals with all losses claimed for 2022–23 at item 13. Do not show cents for any amount you write.
When you need to complete a losses schedule
Complete a Losses schedule 2023 and attach it to the tax return if the fund has:
- a combined total for tax losses and net capital losses carried forward to 2023–24 of greater than $100,000
- an interest in a controlled foreign company (CFC) that has current year CFC losses greater than $100,000, or
- an interest in a CFC that has deducted or carried forward a loss to later income years greater than $100,000.
13. Losses
Complete at item 13, labels:
- U Tax losses carried forward to later income years
- V Net capital losses carried forward to later income years
U Tax losses carried forward to later income years
Show at label U the total tax losses incurred by the fund that are to be carried forward for deduction in later income years, under section 36-15 of the ITAA 1997. The amount at label U is the sum of:
- the fund’s tax loss for 2022–23 (reduced by any net exempt income), and
- the fund’s prior year tax losses.
Include prior year tax losses only to the extent that they have not been utilised (within the meaning given to that term by section 960-20 of the ITAA 1997).
The fund’s 2022–23 net exempt income, if any, is taken into account to calculate the amount of its 2022–23 tax loss. If the fund’s 2022–23 net exempt income is greater than the amount by which the fund’s deductions (not including prior year tax losses) exceed its assessable income in 2022–23, the fund’s 2022–23 tax loss will be nil and the surplus net exempt income will reduce prior year tax losses. Example 3c shows the effect of exempt current pension income on tax losses.
The meaning of ‘net exempt income’ is explained at item 11 – label M Tax losses deducted. Do not include any net capital losses to be carried forward to later income years at label U; show these at label V Net capital losses carried forward to later income years and item 3 in the CGT schedule, if a schedule is required.
If the fund is required to complete a Losses schedule 2023, the amount shown at item 1 – label U Tax losses carried forward to later income years in part A the schedule must be the same as the amount shown at label U in the tax return.
Do not include an amount of quarantined losses in respect of non-arm’s length income at label U. You should keep a record of the quarantined loss amount with the fund’s tax record.
V Net capital losses carried forward to later income years
Show at label V the total of any unapplied net capital losses from collectables and unapplied net capital losses from all other CGT assets and events. If this item applies to the fund, you must refer to the Guide to capital gains tax 2023 to complete this item. It also explains the special CGT rules that apply to foreign residents and trustees of foreign trusts.
This information is calculated or transferred from:
- label 3B in table 3 and label 3A in table 9 of the CGT summary worksheet
- item 3 – labels A and B in item 3 of the CGT schedule, if one is required.
If the fund is required to complete a Losses schedule 2023 the amount shown in part A at item 2 – label V Net capital losses carried forward to later income years of that schedule must be the same as the amount written at label V in the tax return.
Continue to: Section F: Other information