Deferred losses section should be used when person defer current losses to the next year and cannot claim loss this year, ATO link 

Example I have current year deferred losses of 999 & Prior Year Deferred Losses of 1000.

Business --->Net Income

Deferred Losses

Business Loss Activity Details

Commercial Losses Carried forward

Don't fill any information relating to Non Commercial Losses if the loss is not non commercial.

Note: P8 Deferred non-commercial losses from a prior year” user has to manually enter deferred losses if they are relating to same or similar activity from the previous year.

Losses section shows overall tax losses, not only business. User should also show the loss on Business Income & Expenses section. This amount will go in ITR’s Net income and in losses section.


Question: If the taxpayer is not operating the business (where the business had a non-commercial loss in 2020). If there is no business activity in 2021, then I suppose the only reason to carry the non-deferred loss through from prior year is to reach a new grossed-up value.

Answer: ie, it's only useful if there is business activity for the given business in 2021. If the business restarts in 2022, simply include the 2020 non deferred loss as an opening balance in that year.