It is important to read Item 16 - Deferred non-commercial business losses on the ATO website before completing this item.
Claiming a business loss
For information on claiming a business loss, refer to Guide to non-commercial losses on the ATO website. Deferred Non-commercial losses must be dissected into Primary Production and Non-Primary Production income.
If you are engaged in a hobby, then you are not carrying on a business activity. Income you receive from a hobby is not assessable for income tax purposes and you can't claim expenses as a tax deduction.
If you complete Item 16, you must complete Item P9.
Label F - Your share of deferred losses from partnership activities
Press [Enter] at label F to enter the amounts that will be integrated to this label (F) and to either or both label I (Primary Production deferred losses) and J (Non-Primary production losses). Refer to Deferred Non-commercial Business Losses worksheet.
Whether losses have to be deferred depends on an Income test which is applied before the 4 tests. If Income Test income exceeds $250,000 the losses must be deferred.
Label G - Deferred Non-commercial business losses for sole traders
Press [Enter] at label G to key amounts into the dissection box at this label. Primary Production losses integrate to label I and Non-Primary Production losses to label J. The sum of the PP and Non-PP losses integrates to label G.
Press [Enter] at label G to enter the amounts that will be integrated to this label and to either or both labels I (Primary Production deferred losses) and label J (Non-Primary production losses). Refer to Deferred Non-commercial Business Losses worksheet.
Label I - Primary Production Deferred Losses
This is a non-editable field and is the total of the PP deferred losses entered in the worksheets behind either or both 16F and 16G.
Label J - Non-Primary Production Deferred Losses
This is a non-editable field and is the total of the PP deferred losses entered in the worksheets behind either or both 16F and 16G.
