When you need to complete a losses schedule
Complete a Losses schedule 2024 and attach it to the tax return if the fund has either:
- a combined total for tax losses and net capital losses carried forward to 2024–25 of greater than $100,000
- an interest in a CFC that has current year CFC losses greater than $100,000
- 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
Write 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 Income Tax Assessment Act 1997 (ITAA 1997). The amount at label U is the total of:
- the fund’s tax loss for 2023–24 (reduced by any net exempt income)
- the fund’s prior year tax losses to the extent that they have not already been utilised within the meaning of section 960-20 of the ITAA 1997.
The fund’s 2023–24 net exempt income, if any, is taken into account when calculating the amount of its 2023–24 tax loss. If the fund’s 2023–24 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 2023–24, the fund’s 2023–24 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. Don't 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 in the capital gains tax (CGT) schedule at item 3, if a schedule is required.
If the fund is required to complete a Losses schedule 2024, the amount shown at item 1 – label U Tax losses carried forward to later income years in part A of the schedule must be the same as the amount shown at label U in the tax return.
Don't 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
Write 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 2024 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 2024 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
Return to: Instructions to complete the fund income tax return 2024