Part B - Losses carried forward from earlier income years

Use worksheet 1 to work out what to write at Q and R at item L1.

Step 1

• Write at (a) in worksheet 1 the total amount of tax losses you have available from earlier years. Do not include non-primary production losses from 1988-89 or earlier years.
• Separate the amount at (a) into your losses from primary production and from non-primary production. Write the amounts at (b) and (c) respectively.

Step 2

Write at (d) the total of your exempt income for 2011-12, if any.

Step 3

Write at (e) the total expenses (other than capital expenses) incurred in earning your exempt income. This amount should also include any foreign tax payable on your exempt income.

Step 4

Take (e) away from (d) and write the answer at (f).
If (e) is more than (d), write 0 at (f).

Step 5

If (f) is more than (a), you do not have any losses you can claim at this item. Leave item L1 blank Otherwise, take (f) away from (a) and write the answer at (g).

Step 6

• If you have an amount at (b) but not at (c), take (f) away from (b) and write the answer at (h).
• If you have an amount at (c) but not at (b), take (f) away from (c) and write the answer at (i).
• If you have amounts at both (b) and (c), you choose how much of (f) to take from each of (b) and (c).

You cannot have a negative amount at (h) or (i), and the total of (h) and (i) must equal (g).

Worksheet 1
	Total losses	Primary production losses	Non-primary production losses
Total tax losses from earlier years	$			(a)
Primary production losses from earlier years		$		(b)
Non-primary production losses from earlier years			$	(c)
Exempt income for 2011-12	$			(d)
Expenses relating to your exempt income	$			(e)
Net exempt income for this year Take (e) away from (d).	$			(f)
Total prior year losses available for use this year. Take (f) away from (a).	$			(g)
Primary production losses available for use. Take (f) away from (b) Non-primary production losses available for use. Take (f) away from (c)		$		(h)
			$	(i)
You cannot have a negative amount at (h) or (i). The total of (h) and (i) must equal (g).

Step 7

Transfer the amount at (h) to Q item L1.

Step 8

Transfer the amount at (i) to R item L1.

Step 9

If the amount at SUBTOTAL on page 4 of your tax return is a loss, go to step 19. Otherwise, read on.