Losses are transferred when new report for the next year is created. Also user can rollover anytime from previous year using Rollover button.
Currently Capital, Tax and Deferred losses are transferred to the next year. 


ATO guide - Loss carry back tax offset tool


Applying PRIOR YEAR LOSS

Carried Forward Loss

Losses schedule must be completed in order to lodge CTR with “Tax losses carried forward” greater than $100,000. This is mandatory for ATO and cannot be avoided. ATO guide


FAQ:

Q: How to fill in this “ADD tax loss amount from conversion of excess franking offsets”


A: Please refer to the ATO Link below as your basis of your calculation:
https://www.ato.gov.au/Forms/Company-tax-return-instructions-2021/?page=13#H___Excess_franking_offsets


Below is the guide on how to reflect it in the form:

Go to "Forms" and a click "Financial Information" tab so that you can find the "Excess Franking Offsets" line item.

Scroll down below the page and manually encode the amount in the "Excess franking offsets" line (8H).


Go to “Others” tab and click “Losses” tab, then click “Edit” button.

After clicking the “Edit” button, the “Losses Schedule” will show and you can see the line item for the “Tax loss amount from conversion of excess franking offsets”. For this example, the amount is 400 (AUD400.00/25%). Rate varies according to the year of the form being filed. 


Company Tax Rate reference:

https://www.ato.gov.au/rates/changes-to-company-tax-rates/#:~:text=From%20the%202021%E2%80%9322%20income,the%202020%E2%80%9321%20income%20year.


Note: Loss carry back tax offset cannot be more than Closing franking account balance. User can read how to complete franking account records here- https://www.ato.gov.au/business/imputation/paying-dividends-and-other-distributions/franking-account/"