For the year ended 30 June 2021, a company with an aggregated turnover of less than $5 billion can choose to carry back 2021 and/or 2020 tax losses and offset them against prior year tax liabilities.
Specifically, tax losses made in 2020 can be carried back and offset against a company’s 2019 income tax liability and tax losses made in 2021 can be carried back and offset against a company’s 2019 and 2020 income tax liability.
The amount of offset/refund will be limited to the lesser of:
When applying these loss carry back rules it is also important to note that:
The loss carry back measures can be complicated and the devil is in the detail. If you incurred a loss in the 2020 and/or 2021 income tax years and paid tax in relevant earlier years, please speak to your Crowe adviser. Alternatively, get in touch with the Tax Advisory team who can review your franking account and your tax liability to help ensure the loss carry back measures are correctly applied.