Income Tax Assessment Act 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-5 - RULES ABOUT DEDUCTIBILITY OF PARTICULAR KINDS OF AMOUNTS  

Division 36 - Tax losses of earlier income years  

Subdivision 36-A - Deductions for tax losses of earlier income years  

SECTION 36-10   How to calculate a tax loss for an income year  

36-10(1)    
Add up the amounts you can deduct for an income year (except ^* tax losses for earlier income years).

36-10(2)    
Subtract your total assessable income.

36-10(3)    
If you ^* derived ^* exempt income, also subtract your ^* net exempt income (worked out under section 36-20 ).

36-10(4)    
Any amount remaining is your tax loss for the income year, which is called a loss year .

Note 1:

Some deductions are limited so that they cannot contribute to a tax loss. See section 26-55 (Limit on certain deductions).

Note 2:

The meanings of tax loss and loss year are modified by section 36-55 for a corporate tax entity that has an amount of excess franking offsets.

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History

S 36-10 amended by No 143 of 2007 , s 3 and Sch 1 item 140, by substituting Note 1, applicable in relation to income years, statutory accounting periods and notional accounting periods starting on or after the first 1 July that occurs after 24 September 2007. For savings provisions, see note under Div 770 heading . Note 1 formerly read:

Note 1:

Some deductions are limited so that they cannot contribute to a tax loss. See:

• section 26-55 (Limit on certain deductions)

• section 79D of the Income Tax Assessment Act 1936 (Limit on deductions for foreign income).

S 36-10 amended by No 142 of 2003.

36-10(5)    

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For subsection (3), if you have *exempt income under section 51-100 (about shipping), disregard 90% of so much of your *net exempt income as directly relates to that exempt income.

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History

S 36-10(5) inserted by No 57 of 2012, s 3 and Sch 1 item 2, applicable in relation to shipping activities that take place on or after 1 July 2012.

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