Learn how to apply brought forward revenue losses against current year losses in a company.
This video demonstrates the use of the losses's schedule.
Find the losses section at the bottom of the Reconciliation tab.
Losses schedule must be completed in order to lodge CTR with “Tax losses carried forward” greater than $100,000. This is mandatory for ATO and cannot be avoided. ATO guide
Steps:
1. Navigate to Other > Losses and activate as YES.
2. Select Edit in Losses schedule then enter brought-forward losses (e.i., $150,000 tax losses carried forward).
3. In Reconciliation tab, manually input deductible losses at Tax losses deducted to offset current profits (zeroing taxable income if applicable).
4. Return to Losses schedule > Edit
Apply the deducted amount via SUBTRACT Tax losses deducted.
Remaining balance shows as carried forward to later income years.
Click here to read more about Loss carry-back for companies
To fill Losses Carried forward to later income years - navigate and fill Losses Reconciliation sections, fields B-I will be transferred to 2019 – 2020 income year.
Note: Fields B-I auto-populate from reconciliation for schedule completion. Loss carry-back offsets (if eligible) cannot exceed closing franking account balance.
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