What deductions are allowable?



This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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You may claim the following deductions for each class of assessable foreign income:

  • expenses directly related to that class of foreign income
  • other deductions relating to that class of foreign income
  • a share of the apportionable deductions - that is, deductions that cannot be related to a particular type of income - for example, gifts
  • unused quarantined foreign losses from prior years
  • prior year domestic losses, if you make an election to offset those losses against a class of foreign income
  • if your allowable deductions for the current year are more than your domestic source income, the amount by which those deductions are more than your domestic source income.

Refer to appendix 3 of this guide and to Taxation Ruling IT 2446 for more information on allowable deductions.

Last modified: 05 Dec 2006QC 17522