Tax Losses of Earlier Income Years
Losses brought forward should be reflected here. Those losses are then available to offset any taxable income.
Finally, any balance of losses either brought forward or generated in the current year will be carried forward to the following tax year.
Note - This applies to all losses, not just business losses.
Illustration. The client has:
Income current year = $1280
Loss Previous year = $4782
Difference = $3502 ($1280-$4782)
Step 1 Recognize the amount/loss from the previous year
Step 2 Current Year Income (automatically calculated, based on the provided details)
Step 3 Recording of the Losses via "Business Loss Activity Details"
Need to carry forward the prior year loss of $4782 and loss (difference) of $3502
Via P9 Business loss activity details
The recording of the loss has no effect yet to the ax Estimate Calculation Figures (in green arrow)
Step 4 Work out the "Deferred Losses" tab.
Once the the loss recorded in item 16 "Deferred losses" the Tax Estimate Calculation Figures will make an offset. (see below calculation in green)
note that $3502 is the total amount of the losses ($1280-$4782=$3502)
Final calculations
ATO Related Article :
How to use Deferred Business Losses (Carried forward Loss)