| Carrying forward prior year losses Company Losses Up until June 2003, losses could be transferred between companies in the same 'wholly owned group'. From that date the group consolidation regime commenced and company losses can only be transferred where group companies elect to be consolidated and certain tests are met. From the 2003 income year, companies can choose not to deduct prior year losses thus allowing them to frank their distributions. For more information on this area please click here . Trust Losses Trust loss rules apply from the 1995 tax year, affecting the carry forward of losses. Certain rules must be met to allow losses to be carried forward. Either a 'same ownership' test must be met or a 'family trust' election made. Individuals Since July 1990, individuals can carry forward losses indefinitely. Prior to that time losses could only be carried forward for a period of seven years. Primary Production Losses There is no time limit on the carry forward of primary production losses. |
