No wastage of current year tax losses and optional use of prior year tax losses
About this fact sheet
This fact sheet provides information on the operation of the no wastage of current year losses and optional use of prior year losses measures. It provides examples on how the new measures work.
These measures are intended to ensure that corporate tax entities do not use up (‘waste’) losses against franked dividend income.
Subject to certain limitations, corporate tax entities will be able to choose the amount of prior year losses they wish to deduct in a later year of income. This also means that corporate tax entities can choose not to deduct prior year losses in order to pay sufficient tax to be able to frank their distributions. This measure applies retrospectively to deductions of tax losses in the year in which 1 July 2002 falls and to later years of income.
Corporate tax entities can also treat a current year loss that would otherwise be used up against franked dividend income as a tax loss for that income year and be able to carry forward the tax loss for consideration as a deduction in a later year of income. This measure applies retrospectively to the year of income in which 1 July 2002 falls and to later years of income.
Subscribe
