If your business made tax losses in previous years, you can carry forward those losses. You can also claim a deduction for those losses in a later year. However, sole traders and individual partners in a partnership are subject to the non-commercial loss rules.

When you carry forward tax losses, all of the following apply:
If you have tax losses from several previous years, you must claim the entire loss you incurred from the earliest year before you can claim all or part of a tax loss from a later year.

You can use your tax losses from earlier income years to reduce your Australian income to zero only. If your tax losses from earlier income years are more than your Australian income, you must keep a record of the tax losses to claim the extra tax loss amount in a later year.

You can carry forward most tax losses indefinitely.
If you have unclaimed foreign losses relating to the income years 1998-99 through to 2007-08, then special deduction rules apply.

If you operate your business as a sole trader, partnership or trust, you cannot choose the year or years in which to claim a deduction for your tax losses from previous years. You must carry the tax loss forward from one year to the next until they are all claimed.

If you operate your business as a trust and you incur a tax loss, you cannot distribute the loss to the trust’s beneficiaries.
There are special rules that restrict when you can claim a deduction for a tax loss as a trust. We recommend you seek further advice if you wish to claim such a deduction.

If you operate your business as a company, you cannot distribute any loss you incur to your shareholders. The company must carry the tax loss forward and offset it against assessable income in a later year.

As a company, you cannot deduct a tax loss unless either of the following applies:
• you have the same owners and the same control throughout the period from the start of the loss year to the end of the income year
• you carried on the same business throughout a specified period.

If you operate your business as a company, under certain conditions you may be able to:
• choose the amount of a previous year’s tax loss you want to claim
• carry forward to a later year a tax loss you would have incurred in a particular year had you not received income from franked dividends.

Ref: ATO

You can claim a deduction for most expenses you incur in running your business as long as they are directly related to earning your assessable income.
Generally, working or operating expenses (such as office stationery and wages) can be claimed in the year you incur them. However, capital expenses (such as buying plant and equipment) are claimed over time.
When an expense is incurred depends on the accounting system you use. There are different rules for expenses you pay in advance (prepaid expenses).

What is an allowable deduction?
Most expenses you incur in running your business can be claimed as deductions to reduce your assessable income. You can’t claim private or domestic expenses, such as childcare fees. If you incur an expense that relates to both business and private use of an asset, you can only claim the business portion.

Expenses you can claim in the year you incur them
Working or operating expenses you incur for the everyday running of your business (such as office stationery, wages and rent of business premises) are called revenue expenses. You can generally claim a deduction for these expenses in the year you incur them.

Expenses you can claim over time
Assets that have a longer life, such as motor vehicles, furniture, and plant and equipment, are called capital assets. Generally, you can’t claim the total cost of a capital asset in the first year. Instead, you claim an amount for the decline in value, or depreciation, of the asset each year over a number of years.
You can also ‘pool’ most capital assets and claim depreciation for the pool, which is simpler than depreciating the individual assets.

When is an expense incurred?
You can generally claim a deduction for an expense in the income year you receive an invoice to pay it. Many small businesses use the cash basis method of accounting and claim deductions in the income year they pay the expense. If you pay in advance for something that won’t be wholly delivered until a later income year, there may be limits on how much you can claim in the year you pay the expense.

Ref: ATO deduction for business

SuperStream is a government reform aimed at improving the efficiency of the superannuation system.

Under SuperStream, employers must make super contributions on behalf of their employees by submitting data and payments electronically in accordance with the SuperStram standard.

Broadly, the SupeStream standard specifies the minimum requirement for dealing with payment and information relating to employer contributions (and other superannuation transactions).
All superannuation funds, including SMSFs, must receive contributions electronically in accordance with this standard.

Employers with 20 or more employees
From 1 July 2014, these employers should start using the SuperStream standard to send contribution data and payment electronically.
New transitional rules were recently introduced to allow these employers (between 1 July 2014 and 2 November 2014) to send contribution messages to a fund using an electronic file format that does not strictly conform to the SuperStream standard (e.g., via a web portal or email), provided the fund has advised it can accept the format.

Employers with 19 or fewer employees
From 1 July 2015, these employers will also be required to send contributions data and payments electronically.

Contributions sent to an SMSF from a related-party employer are exempt from SuperStream and can be made using existing processes.

Meeting SuperStream obligations
SMSF members must provide their employer with:
• their SMSF’s ABN
• their SMSF’s bank account details for receipt of contribution payments; and an electronic service address for receipt of a contribution data message.
If they work for an employer with 20 or more employees, they will need to update their details with their employer as soon as possible. Alternatively, they can check with their employer to confirm which date best aligns with their implementation plan for SuperStream.

SMSF trustees
All super funds (including SMSFs) must receive any employer contributions sent to their fund in accordance with the SuperStream standard.

In particular, they will need to ensure the SMSF’s bank account is able to receive electronic contribution payments and that the SMSF can receive a contribution message with information about these payments in the SuperStream format.

An SMSF will need an electronic service address to be able to receive data message associated with employer contributions sent using SuperStream.

Depending on how they manage their SMSF, trustees may choose to engage a service provider, such as an SMSF administrator or software provider, to obtain an electronic service address.

Service Providers
The list of providers can be found at ATO website.

Employers
Employers have two options for meeting SuperStream; either (a) using software that conforms to SuperStream, or (b) using a service provider who can meet SuperStream on their behalf. The ATO recommends that they start investigating their options now.

Employer Checklist
Choose a service provider for making SuperStream contributions. There are a number of difference solutions available, including using their existing payroll software provider, an outsourced service provider, or a clearing house.
Collect superannuation fund information from new and existing employees, including:
• Unique superannuation identifier (USI) for APRA-regulated funds;
• ABN for SMSFs;
• Bank account details; and
• Electronic service address.

Once the required information has been collected, the employer will need to update their payroll records. This will include providing the employer’s selected service provider the information.

Start making contributions through a payment system that allows the employer to:
• send all data electronically (such as employee details and the amount of super being paid) in a standard format;
• make super payments electronically;
• link data and money with a unique payment reference number;
• send money and data on the same day; and
• respond to fund request for further information within 10 business days.