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3 Allowable deductions

Instructions to complete item 3 allowable deductions of the schedule.

Published 30 May 2024

Tax losses claimed – ordinary class

Write at label I the amount of tax losses of the ordinary class claimed as a deduction under subdivision 36-A of the ITAA 1997.

For a consolidated group, the head company includes at label I the amount of tax losses of the ordinary class claimed as a deduction under subdivision 36-A of the ITAA 1997 by the consolidated group.

If the life insurance company is not a member of a consolidated group, it may need to complete a Losses schedule 2024 (NAT 3425) showing tax losses of the ordinary class and all other relevant items. For more information, see Losses schedule instructions 2024.

For a consolidated group, the head company may need to complete a Consolidated groups losses schedule 2024 (NAT 7888) showing tax losses of the ordinary class at item 3 Tax losses deducted in part A and all other relevant items. For more information, see Consolidated group losses schedule instructions 2024.

Tax losses claimed – complying superannuation class

Write at label H the amount of tax losses of the complying superannuation class claimed as a deduction in accordance with section 320-141 of the ITAA 1997.

The life insurance company may need to complete a Losses schedule 2024 (NAT 3425); or if it is a member of a consolidated group, the head company may need to complete a Consolidated groups losses schedule 2024 (NAT 7888).

In either schedule:

  • do not show any tax losses claimed in the complying superannuation class
  • show the following in part D of the losses schedule  
    • complying superannuation class tax losses carried forward to later income years
    • complying superannuation class net capital losses carried forward to later income years.

Total allowable deductions – ordinary class

Write at label J the total allowable deductions for the ordinary class. For a consolidated group, the head company includes at label J the total allowable deductions for the ordinary class for all members of the consolidated group.

This label is the total allowable deductions of the life insurance company or the consolidated group, less the total allowable deductions of the complying superannuation class.

The total allowable deductions of the ordinary class also includes transfers to the complying superannuation asset pool and SEA as stated in:

Total allowable deductions – complying superannuation class

Write at label K the total allowable deductions for the complying superannuation class. This includes:

  • deducted tax losses of the complying superannuation class determined in accordance with section 320-141 of the ITAA 1997
  • deductions other than tax losses determined in accordance with subsection 320-137(4) of the ITAA 1997.

Continue to: 4 Taxable income or loss

Return to: Instructions life insurance companies taxation schedule 2024

QC101705