• Claiming a business loss

    For income years prior to 2009-10, you can only offset your business loss against assessable income from other sources if any of the following apply:

    • your business activity passes one of four tests (profits test, assessable income test, other assets test, real property test)
    • the Commissioner of Taxation (the Commissioner) exercises discretion to allow the loss to be offset against other income
    • one of the exceptions for primary production or professional arts businesses apply.

    For the 2009-10 and later income years, you can only offset your business loss against assessable income from other sources if any of the following apply:

    • you meet the income requirement and your business activity satisfies one of the four tests (profits test, assessable income test, other assets test, real property test)
    • the Commissioner has exercised discretion to allow you to claim the loss
    • the loss is solely due to a deduction claimed under the small business and general business tax break
    • one of the exceptions for primary production or professional arts businesses apply.
      Last modified: 01 Oct 2013QC 16248