Show download pdf controls
  • Claiming tax losses from previous years

    If your business makes tax losses in any year you can carry forward those losses and claim a deduction for them in a later year. If you are a sole trader or individual partner in a partnership you may also be able to offset the business losses carried forward against other income under the non-commercial business loss rules.

    Your business structure can affect how you can claim tax losses. For example, companies can generally choose the year in which they claim a deduction for a carried forward tax loss. However, if you operate as a sole trader, partnership or trust, you cannot choose the year or years in which you claim a deduction for your prior-year tax losses.

    See also:

    Last modified: 03 Apr 2017QC 33873