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Refund for deductions if I don't pay tax?

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Hi,

 

I'm a 60+ female, now retired, and receive a monthly payment from my Superannuation fund [tax free], so paying NO tax is new to me.

 

However, I now have a very small hobby business. My taxable income for 2020-21 was well under the threshold, and my business made a $1000 loss. The tax agent deferred the loss until this year [2021-22].

 

This year's income will again be well under the tax threshold and I want to know what will happen with that $1000 loss? Will it be a refunded to me? Or doesn't it work like that? I have a thought in the back of my head that deductions only lower your taxable income.

 

Is there any point having a business or claiming business deductions if I don't earn enough to pay any tax?

 

Thank you

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Most helpful response

Taxicorn

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@Libster59 

 

The loss will never be refunded to you, it will just keep rolling forward until it gets used.

 

Having a business earns you income so yes it is worth it to earn income.

 

Lowinging your taxable income can have some benefits with centrelink payments.

 

Deductions do only reduce your tacable income.

 

1 REPLY 1

Most helpful response

Taxicorn

Replies 0

@Libster59 

 

The loss will never be refunded to you, it will just keep rolling forward until it gets used.

 

Having a business earns you income so yes it is worth it to earn income.

 

Lowinging your taxable income can have some benefits with centrelink payments.

 

Deductions do only reduce your tacable income.