Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 2/10)
Character Range: 780362–783097

year greater than the deductions attributable to it for that year (apart from the operation of subsections 35‑10(2) and (2C)); or
 (c) for an applicant who carries on the business activity who does not satisfy subsection 35‑10(2E) (income requirement) for the most recent income year ending before the application is made—the business activity has started to be carried on and, for the excluded years:
 (i) because of its nature, it has not produced, or will not produce, assessable income greater than the deductions attributable to it; and
 (ii) there is an objective expectation, based on evidence from independent sources (where available) that, within a period that is commercially viable for the industry concerned, the activity will produce assessable income for an income year greater than the deductions attributable to it for that year (apart from the operation of subsections 35‑10(2) and (2C)).
Note: Paragraphs (b) and (c) are intended to cover a business activity that has a lead time between the commencement of the activity and the production of any assessable income. For example, an activity involving the planting of hardwood trees for harvest, where many years would pass before the activity could reasonably be expected to produce income.
 (2) The Commissioner may, on application, decide that the rule in subsection 35‑10(2B) does not apply to a *business activity for an income year if the Commissioner is satisfied that it would be unreasonable to apply that rule because special circumstances of the kind referred to in paragraph (1)(a) of this section prevented the activity from starting.
Note: This subsection is intended to provide for a case where a business activity would have begun to be carried on and satisfied one of the tests if it were not for the special circumstances.
 (3) An application for a decision by the Commissioner under this section must be made in the *approved form.

Division 36—Tax losses of earlier income years

Table of Subdivisions
 Guide to Division 36
36‑A Deductions for tax losses of earlier income years
36‑B Effect of you becoming bankrupt
36‑C Excess franking offsets

Guide to Division 36

36‑1  What this Division is about

      If you have more deductions for an income year than you have income, the difference is a tax loss.
Note: You may be able to utilise the tax loss in that or a later income year.

Subdivision 36‑A—Deductions for tax losses of earlier income years

Table of sections
36‑10 How to calculate a tax loss for an income year
36‑15 How to deduct tax losses of entities other than corporate tax entities
36‑17 How to deduct tax losses of corporate tax entities
36‑20 Net exempt income
36‑25 Special rules about tax losses

36‑10  How to calculate a