Income Tax Assessment Act 1997
The company's tax loss for the income year is calculated as follows. 165-70(2)
Total the *notional losses worked out under section 165-50 or 165-75 . 165-70(3)
Add to the total in subsection (2) the amount (if any) by which the company's *full year deductions of these kinds:
(a) deductions for bad debts under section 8-1 (about general deductions) or section 25-35 (about bad debts);
(b) (Omitted by No 121 of 1997)
(c) deductions, so far as they are allowable under Division 8 (which is about deductions) because Subdivision H (Period of deductibility of certain advance expenditure) of Division 3 of Part III of the Income Tax Assessment Act 1936 applies to the company in relation to the income year;
exceed the total of:
(d) the *notional taxable incomes (if any); and
To work out the notional taxable income: see section 165-50 .
(e) the *full year amounts referred to in section 165-60 (if any); and
(f) any *net capital gain of the company for the income year.
If the company *derived exempt income, subtract its *net exempt income (worked out under section 36-20 ). 165-70(5)
Any amount remaining is the company's tax loss for the income year, which is called a loss year .
The meanings of tax loss and loss year are modified by section 36-55 for a corporate tax entity that has an amount of excess franking offsets.
To find out how much of the tax loss can be deducted in later income years: see Subdivision 165-A .
To find out how to deduct it: see section 36-17 .