‑20 Utilisation
(1) None of the following can be *utilised, to the extent it has already been utilised: (a) a *tax loss; (b) a *net capital loss; (c) *net exempt income. Utilisation of losses (2) A *tax loss is utilised to the extent that: (a) it is deducted from an amount of assessable income or *net exempt income; or (b) it is reduced by applying a *total net forgiven amount; or (c) it is *carried back. (3) A *net capital loss is utilised to the extent that: (a) it is applied to reduce an amount of *capital gains; or (b) it is reduced by applying a *total net forgiven amount. Utilisation of net exempt income (4) *Net exempt income for an income year is utilised to the extent that: (a) it is subtracted: (i) from deductions; or (ii) under subsection 268‑60(4) in Schedule 2F to the Income Tax Assessment Act 1936 or subsection 165‑70(4) or 175‑35(4) of this Act; in determining a *tax loss for the income year; or (b) because of it, the extent to which a tax loss can be deducted in that income year is reduced; or (c) because of it, an amount is reduced under subsection 35‑15(2) (about deferral of deductions from non‑commercial business activities); or (d) because of it, a quarantined amount is reduced under subsection 26‑47(8); or (e) it is reduced under subsection 65‑35(3) because of a *tax offset carried forward; or (f) because of it, an amount is reduced under step 2 of the method statement in subsection 160‑10(2) (which is a step in calculating a loss carry back tax offset component).
Sourced from the Federal Register of Legislation at 25 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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