ATO Community

Re: Business Losses

Enthusiast

Views 434

Replies 3

Hi,

I am a sole trader, have a printing business. I also have received some salary.

My business has some carried forward losses from previous years and even this year I have a loss.

I read somewhere that small business can claim business losses against other income (salary) under ATO COVID relief.

Is it possible? Do you have any information on this? Please explain.

 

Thanks

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

Devotee Registered Tax Practitioner

Replies 2

Hi @Prasa1 

 

This is called non-commercial losses. There are some test that you will need to undertake to determine if you are eligible to offset your sole trader losses against other assessable income such as salary or wages. Please check the following link which has extensive information about how this work .

 

https://www.ato.gov.au/Business/Non-commercial-losses/

 

Hope this helps

3 REPLIES 3

Most helpful response

Devotee Registered Tax Practitioner

Replies 2

Hi @Prasa1 

 

This is called non-commercial losses. There are some test that you will need to undertake to determine if you are eligible to offset your sole trader losses against other assessable income such as salary or wages. Please check the following link which has extensive information about how this work .

 

https://www.ato.gov.au/Business/Non-commercial-losses/

 

Hope this helps

Enthusiast

Replies 1

Thanks for the reply.

 

Please advise whether there are any exceptions for these 4 rules as part of COVID relief.

For example- even I do not satisfy any of those rules, can I still offset my losses against salary only for 2020 FY?

 

Thanks 

 

Devotee

Replies 0

No COVID exceptions I am aware of