See Item L1 Tax losses of earlier income years on the ATO website for further information.
Do you have any tax losses of earlier income years?
Complete this item if you have a tax loss from an earlier income year and which you have not claimed as a deduction this year.
You may have a tax loss at item L1 this year which you may be able to claim as a deduction. You must complete this item even if you are unable to claim a deduction for the loss this year.
To complete this item on your tax return you will need records of your tax losses from earlier income years.
Click any of the labels Q, F, R or Z at L1 to record prior year losses in the Prior year losses worksheet (pyl). When you close the pyl worksheet we'll pass the relevant values to the L1 labels.
PP losses are applied before non-PP losses.
Do NOT include:
Expenses and losses incurred in earning foreign income
Deferred non-commercial business losses from a prior year.