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  • Non-commercial losses

    The non-commercial loss rules determine whether the loss, or your share of the loss, is deductible in the current year. Your net small business income, or share of net small business income, is only reduced by losses deductible in the current year.

    Sole traders

    If you're a sole trader affected by the non-commercial loss rules, and your business loss is not deductible this year, treat that loss as zero when working out your net small business income.

    If you have multiple businesses and a business loss is deductible in the current year, use that loss to offset a profitable business in working out your net small business income from all your businesses.

    Partners

    If you're in a partnership, the statement of distribution or advice should show details of any business losses. If your share of the loss is not deductible in the current year, you need to increase your share of the partnership's net small business income by that amount.

    See also:

      Last modified: 18 Jun 2019QC 49023