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What deductions are allowable?

Last updated 4 December 2006

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.

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

QC18000