Tax Losses of Earlier Income Years

Losses brought forward should be reflected here. Those losses are then available to offset any taxable income.

Finally, any balance of losses either brought forward or generated in the current year will be carried forward to the following tax year.

Note - This applies to all losses, not just business losses.

Illustration. The client has 

Loss current year = $1280

Loss Previous year = $4782

Difference = $3502 ($1280-$4782)

Step 1 Recognize the amount/loss from the previous year 

Step 2 Current Year loss (automatically calculated, based on the provided details)

Step 3 Recording of the Losses via "Business Loss Activity Details"

Need to carry forward the prior year loss of $4782 and loss (difference) of $3502


The recording of the loss has no effect yet to the ax Estimate Calculation Figures (in green arrow)

Step 4 Work out the "Deferred Losses" tab.

Once the the loss recorded in "Deferred losses"the Tax Estimate Calculation Figures will make an offset. (see below calculation in green)

note that $3502 is the total amount of the losses ($1280-$4782=$3502)

Final calculations

ATO Related Article :

How to use Deferred Business Losses (Carried forward Loss)

L1 Tax losses of earlier income years 2019

How to claim a tax loss

Partnership Losses 

ITR with Partnership (loss with < $20K assessable income)