This section is about tax losses from earlier income year for which you may be able to claim a deduction in 2018–19.
Essentials
You may have a tax loss at Tax losses of earlier income years this year which you may be able to claim as a deduction. You must complete this section whether or not you are able to claim a deduction for the loss this year.
If you became bankrupt before 1 July 2018, or were released from debts under an arrangement entered into under the bankruptcy laws before 1 July 2018, 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.
Do not show at this section
- capital losses. Show these at Capital gains or losses.
- expenses and losses you incurred in earning foreign income. Show these at Foreign income, assets and entities.
- deferred non-commercial business losses from a prior year
- for partnership activities. Show these at Partnerships in the Business/sole trader, partnership and trust income (including loss details) section.
- for sole trader activities. Show these at Business income or losses in the Business/sole trader, partnership and trust income (including loss details) section.
Completing this section
If your latest 2017–18 tax return lodgment shows a taxable income greater than $0, you are not eligible to complete this section in myTax.
You will need the following tax losses amounts that you worked out when completing last year's tax return:
- primary production losses carried forward to 2018–19
Primary production activities are described in Information for primary producers. - non-primary production losses carried forward to 2018–19.
- Enter any primary production and non-primary production losses carried forward to 2018–19 into the corresponding fields.
- Calculate your net exempt income.
Your net exempt income is the total of your exempt income for 2018–19 less the total expenses (other than capital expenses) incurred in earning your exempt income. If the result is less than zero, your net exempt income is 0.
To find out what amounts are exempt income, see Amounts that you do not pay tax on. - Enter your net exempt income into the corresponding fields.
Note: To work out whether you have any losses to carry forward to 2019–20, see Calculate losses to carry forward to 2019–20.
Calculate losses to carry forward to 2019–20
Step 1
Is Taxable income on the Prepare return screen a loss?
Yes - Go to step 4.
No - Go to step 2.
Step 2
Is Taxable income plus Losses claimed this income year (Primary production and Non-primary production), treated as a positive amount, equal to or more than Total losses available this income year (Primary production and Non-primary production)?
Yes - You have no losses (primary production or non-primary production) to carry forward to 2019–20.
No - Go to step 3.
Step 3
Is Taxable income plus Losses claimed this income year (Primary production and Non-primary production), treated as a positive amount, equal to or more than Total losses available this income year (Primary production)?
Yes - You have no primary production losses to carry forward to 2019–20.
No - The amount of:
- primary production losses you carry forward to 2019–20 is Total losses available this income year (Primary production) less Losses claimed this income year (Primary production).
- non-primary production losses you carry forward to 2019–20 is Total losses available this income year (Non-primary production) less Losses claimed this income year (Non-primary production).
Keep a record of these amounts for next year.
Step 4
Use the worksheet below to work out the primary production and non-primary production losses you carry forward to 2019–20.
Make sure you show all losses as negative amounts in the worksheet. Amounts at rows e, f, g and h may be losses. If so, show them as negative amounts.
Row |
Calculation |
Amount |
|---|---|---|
a |
Taxable income on your tax return. This amount is a loss, show it as a negative amount. |
$ |
b |
Gifts or donations on your tax return. |
$ |
c |
Personal super contributions on your tax return. |
$ |
d |
Add rows b and c. |
$ |
e |
Add row d, which is either zero or positive, to row a which is negative. If row e is positive, go to step 7. |
$ |
f |
Trusts (Net primary production amount) plus Partnerships (Net primary production amount) on your tax return. |
$ |
g |
Business income or loss (Net primary production) on your tax return. |
$ |
h |
Add rows f and g. |
$ |
i |
If row h is a loss and is the same or a greater loss than row e, show the amount from row e. If row h is a loss and is a smaller loss than row e, show the amount from row h. Otherwise, show 0. |
$ |
j |
If row h is a loss and is the same or a greater loss than row e show 0. If row h is a loss and is a smaller loss than row e, take row h away from e and show the answer. If row h is not a loss, show the amount from row e. |
$ |
Go to step 5.
Step 5
Is the amount at row i zero?
Yes - The amount of primary production losses you carry forward to 2019–20 is Total losses available this income year (Primary production). Go to step 6.
No - Add the amount at row i to Total losses available this income year (Primary production). When adding these two amounts ignore the fact that they are both negative amounts. The answer is the amount of primary production losses you carry forward to 2019–20. Go to step 6.
Step 6
Is the amount at row j zero?
Yes - The amount of non-primary production losses you carry forward to 2019–20 is Total losses available this income year (Non-primary production).
Keep a record of these amounts for next year.
No - Add the amount at row j to Total losses available this income year (Non-primary production). When adding these two amounts ignore the fact that they are both negative amounts. The answer is the amount of non-primary production losses you carry forward to 2019–20.
Keep a record of this amount for next year.
Step 7
Total losses available this income year (Primary production) is your primary production losses you carry forward to 2019–20.
Total losses available this income year (Non-primary production) is your non-primary production losses you carry forward to 2019–20.
Keep a record of these amounts for next year.
These myTax 2019 instructions are about tax losses from earlier income years for which you may be able to claim a deduction this year.