IITR.311048: Where Type of Loss of either '6' or '7' has been selected in Business loss activity details, the sum of Taxable income or loss plus Net loss plus Individual total deductions, less Net capital gain, must be under $40,000. Loss type '6' or '7' can only be used when the assessable income is less than $40,000.
The SBR error coding - (^IITR482 = 6 OR ^IITR482 = 7) AND ((^IITR157 + ^IITR487 + ^IITR150 - ^IITR311) >= 40000)
Where;
IITR157 - Total Income or Loss
IITR487 - The net loss amount for the activity deriving the largest loss
IITR150 - Total Deductions
IITR311 - Net Capital Gain
If the equation of these values results in an amount greater than $40000, then per the SBR rules, the error will result.
Please contact the ATO if you need further assistance on losses.