Great, thanks for the quick and clear answer. I'll need to do some more reading on this through the year so I can be ready for next year's tax.
By the way, I checked with the ATO about offsetting and deferring losses in a partial way. They confirmed all loses must be offset against the other income if the income tests or requirements are met, this goes until having an income of $0, if the income is negative the loses will be carried to the next income year.