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nathanHussey(Initiate)Initiate
4 Feb 2023

We’ve had net rental loses in the past years where we were non resident - as we were renting out our home.


now back as resident, we will have Australian income (but no rental income, since living in home).


it appears reading from the posts that rental loses as non-resident cumulate. So the question is three parts: are we able to offset the cumulative losses against employment income; secondly, what section of tax return do we declare these loses; and finally, if the cumulative loses are greater than income, will the remainder carry forward to subsequent financial year or will they only carry forward to the first financial year as resident.

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JodieR_ATO(Community Support)Community Support
6 Feb 2023

Hi @nathanHussey,


When you were a foreign resident, if you had a tax loss this would've been calculated on the basis of your Australian income and deductions incurred in earning the Australian income. If you've now returned to Australia and are declaring your worldwide income, you can still apply the tax loss you've been carrying forward and have not been able to apply previously. You will need to apply the tax loss in the earliest FY you can use it. If you have a remainder tax loss, you can carry it forward.


You can view how to apply a tax loss from an earlier income year from here.

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Most helpful reply

JodieR_ATO(Community Support)Community Support
6 Feb 2023

Hi @nathanHussey,


When you were a foreign resident, if you had a tax loss this would've been calculated on the basis of your Australian income and deductions incurred in earning the Australian income. If you've now returned to Australia and are declaring your worldwide income, you can still apply the tax loss you've been carrying forward and have not been able to apply previously. You will need to apply the tax loss in the earliest FY you can use it. If you have a remainder tax loss, you can carry it forward.


You can view how to apply a tax loss from an earlier income year from here.

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How to factor Rental Loses | ATO Community