Things you need to know
Complete this question if you have a tax loss from an earlier income year which you have not claimed as a deduction.
You may have a tax loss at question L1 in 2023–24 which you may be able to claim as a deduction. You must complete this question whether or not you are able to claim a deduction for the loss in 2023–24.
If you became bankrupt before 1 July 2023, or were released from debts under an arrangement entered into under the bankruptcy laws before 1 July 2023, you generally cannot claim a deduction for tax losses incurred before you became bankrupt or were released from the debts.
If you have tax losses from more than one earlier income year, you should generally deduct the earliest losses first.
Don't include at this question
Don't show at this question:
- capital losses, go to question 18 Capital gains 2024
- expenses and losses in relation to earning foreign source income, go to question 20 Foreign source income and foreign assets or property 2024
- deferred non-commercial business losses from a prior income year
- for partnership activities, go to question 13 Partnerships and trusts 2024
- for sole trader activities, go to P8 Business income and expenses in Business and professional items schedule 2024.
If you don't have tax losses from earlier income years, go to Taxable income or loss 2024. Otherwise, read on.
What you need to answer this question
To complete this question, you will need records of your tax losses from earlier income years.
Completing your tax return
The amount of tax losses from earlier income years that you write at question L1 – labels Q and R is the amount of tax losses you carried forward from 2022–23 less the amount of your net exempt income for 2023–24.
You need to separate your losses into primary production losses and non-primary production losses. Primary production activities are described in Information for primary producers 2024.
Part A – Losses carried forward from earlier income years
Use Worksheet 1 to work out what to write at question L1 – labels Q and R.
Step 1
Write at Worksheet 1 – row a the total amount of tax losses you have available from earlier income years. Do not include non-primary production losses from 1988–89 or earlier years.
Separate the amount at row a into your losses from primary production and from non-primary production. Write the amounts at rows b and c respectively.
Step 2
Write at row d the total of your exempt income for 2023–24, if any (see Amounts that you do not pay tax on 2024 to find out what amounts are exempt income).
Step 3
Write at row e the total expenses (other than capital expenses) incurred in earning your exempt income. Include any foreign tax payable on your exempt income.
Step 4
Subtract row e from row d and write the answer at row f. If row e is more than row d, write 0 (zero) at row f.
Step 5
If row f is more than row a, you do not have any losses you can claim at this question. Leave question L1 blank and go to Where to go next. Otherwise, subtract row f from row a and write the answer at row g.
Step 6
If you have an amount at
- row b but not at row c, subtract row f from row b and write the answer at row h
- row c but not at row b, subtract row f from row c and write the answer at row i
- both rows b and c, you choose how much of row f to subtract from each of rows b and c.
You can't have a negative amount at rows h or i.
The total of rows h and i must equal row g.
Step 7
Transfer the amount at row h to question L1 – label Q.
Step 8
Transfer the amount at row i to question L1 – label R.
Step 9
If the amount at Subtotal on page 4 of your tax return is a loss, go to Step 19. Otherwise, read on.
Part B – Losses claimed in 2023–24
The following steps will help you work out what to write at question L1 – labels F and Z, if the amount at Subtotal is not a loss.
Step 10
If the amount at Subtotal is more than, or equal to, the amount at Worksheet 1 – row g, go to Step 17. Otherwise, read on.
Step 11
If the amount at Subtotal is more than, or equal to, the amount at question L1 – label Q, go to Step 14.
Otherwise, transfer the amount at Subtotal to question L1 – label F.
Step 12
Subtract the amount at label F from the amount at label Q. The answer is the amount of primary production losses you carry forward to 2024–25. Keep a record of it for next year.
Step 13
The amount at question L1 – label R is the amount of non-primary production losses you carry forward to 2024–25. Keep a record of it for next year.
You have finished this question. Go to Where to go next.
Step 14
Transfer the amount at question L1 – label Q to question L1 – label F.
Step 15
Subtract the amount at question L1 – label F from the amount at Subtotal. Write the answer at question L1 – label Z.
Step 16
Subtract the amount at question L1 – label Z from the amount at question L1 – label R.
The answer is the amount of non-primary production losses you carry forward to 2024–25. Keep a record of it for next year.
You have no primary production losses to carry forward to 2024–25.
You have finished this question. Go to Where to go next.
Step 17
Transfer the amount you wrote at question L1 – label Q to question L1 – label F.
Step 18
Transfer the amount you wrote at question L1 – label R to question L1 – label Z.
You have no primary production losses or non-primary production losses to carry forward to 2024–25.
You have finished this question. Go to Where to go next.
Part C – If the amount at Subtotal is a loss
The following steps below if the amount at Subtotal is a loss.
Step 19
If the amount you wrote at Subtotal is a loss, leave question L1 – labels F and Z blank.
Step 20
Use Worksheet 2 to work out the primary production losses you carry forward to 2024–25 and the non-primary production losses you carry forward to 2024–25.
Make sure you show all losses as negative amounts in Worksheet 2. Amounts you write at rows t, u, v and w may be losses. If so, show them as negative amounts.
|
Row |
Calculation |
Amount |
|---|---|---|
|
p |
Amount from Subtotal This amount is a loss, show it as a negative amount. |
$ |
|
q |
Amount from question D9 Gifts or donations in your tax return |
$ |
|
r |
Amount from question D12 Personal superannuation contributions in your supplementary tax return |
$ |
|
s |
Add rows q and r. |
$ |
|
t |
Add row s, which is either zero or positive to row p which is negative. |
$ |
|
u |
Amount from question 13 Partnerships and trusts – label Net primary production amount in your supplementary tax return |
$ |
|
v |
Amount from question 15 Net income or loss from business – label B in your supplementary tax return |
$ |
|
w |
Add rows u and v. |
$ |
|
x |
If row w is a loss and is the same or a greater loss than row t, write the amount from row t. |
$ |
|
y |
If row w is a loss and is the same or a greater loss than row t write 0 (zero). |
$ |
Step 21
If the amount at row x is zero, then the amount at question L1 – label Q is the amount of primary production losses you carry forward to 2024–25. Keep a record of it for next year.
If the amount at row x is not zero, then add the amount at row x to the amount at question L1 – label Q. When adding these 2 amounts ignore the fact that they are both negative amounts. The answer is the amount of primary production losses you carry forward to 2024–25. Keep a record of it for next year.
Step 22
If the amount at row y is zero, then the amount at question L1 – label R is the amount of non-primary production losses you carry forward to 2024–25. Keep a record of it for next year.
If the amount at row y is not zero, then add the amount at row y to the amount at question L1 – label R. When adding these 2 amounts ignore the fact that they are both negative amounts. The answer is the amount of non-primary production losses you carry forward to 2024–25. Keep a record of it for next year.
You have finished this question. Go to Where to go next.
Step 23
The amount at label Q is your primary production losses you carry forward to 2024–25.
The amount at label R is your non-primary production losses you carry forward to 2024–25.
Keep a record of them for next year.
Where to go next
- Go to Taxable income or loss 2024.
- Return to main menu Individual tax return instructions 2024.
- Go back to Subtotal 2024.