Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 3/10)
Character Range: 782864–785403

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 tax loss for an income year
 (1) Add up the amounts you can deduct for an income year (except *tax losses for earlier income years).
 (2) Subtract your total assessable income.
 (3) If you *derived *exempt income, also subtract your *net exempt income (worked out under section 36‑20).
 (4) Any amount remaining is your tax loss for the income year, which is called a loss year.
Note 1: Some deductions are limited so that they cannot contribute to a tax loss. See section 26‑55 (Limit on certain deductions).
Note 2: 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.
 (5) For subsection (3), if you have *exempt income under section 51‑100 (about shipping), disregard 90% of so much of your *net exempt income as directly relates to that exempt income.

36‑15  How to deduct tax losses of entities other than corporate tax entities
 (1) Your *tax loss for a *loss year is deducted in a later income year as follows if you are not a *corporate tax entity at any time during the later income year.
Note 1: See section 36‑17 for the deduction of a tax loss of an entity that is a corporate tax entity at any time during the later income year.
Note 2: A tax loss can be deducted only to the extent that it has not already been utilised: see subsection 960‑20(1).

If you have no net exempt income
 (2) If your total assessable income for the later income year exceeds your total deductions (other than *tax losses), you deduct the tax loss from that excess.

If you have net exempt income
 (3) If you have *net exempt income for the later income year and your total assessable income (if any) for the later income year exceeds your total deductions (except *tax losses), you deduct the tax loss:
 (a) first, from your net exempt income; and
 (b) secondly, from the part of your total assessable income that exceeds those deductions.
 (4) However, if you have *net exempt income for the later income year and those deductions exceed your total assessable income, then:
 (a) subtract that excess from your net exempt income; and
 (b) deduct the tax loss from any net exempt income that remains.
To work out your net exempt income: see section 36‑20.

General
 (5) If you have 2 or more *tax losses, you deduct them in