Attention Businesses: Made a loss this year? Claim it now with Loss Carry Back.

Businesses: Loss Carry Back gives you the choice to claim your current tax loss against a previous income year. This could result in a cash refund for your business!
Business | Business Accounting

What is loss carry back?

The government recently announced a loss carry back measure to encourage new investments. This new law came into effect 1 January 2021 and could influence your company’s tax position in 2021 or 2022.

Your business could claim a refundable tax offset up to the amount of their prior liability. Cash refunds can be generated by carrying back allocated tax losses.

Your business may be eligible if:

  • Your business is a corporate limited partnership, company, or a public trading trust, and was registered as such during the year you want to claim the business tax offset
  • The business had an income tax liability in 2019, 2020 or 2021 financial years
  • The business made a loss in the 2020, 2021 or 2022 financial years
  • The aggregated turnover of the business was less than $5 billion
  • Your tax return lodgement obligations for the last five years are up to date.

When completing the 2021 Financial Year accounts, here at Nurture, we will be reviewing each potential business and be in touch to discuss the rules around eligibility, integrity, and tax offset calculation and how they influence your company’s business tax. You can only claim the tax loss once, so you must get advice about how and when to apply this measure to your business.

TLDR: Claim money back from previous tax years, if your business made a loss in the most recent financial year.

Feeling confused?

Not to worry, we’re here to help and make sure you can claim every possible cent back. We’re hoping that this government initative will help businesses in recovering from potential losses, and set them up for the future.

To find out more, go to: www.ato.gov.au/business/loss-carry-back-tax-offset

Alternately, please just contact us directly with any concerns you have, and we will do out best to help you out wherever possible. Look forward to hearing from you. 

Lisa Hooton
Lisa Hooton is the founding director of Nurture Accounting in North Lakes QLD. She has 25 years experience in Public Practice with a passion for Small Business Compliance. Lisa is dedicated to Nurture’s clients and team, always learning, fun and spirited individual. Lisa is a guru in time and workflow managment. She is also an advocate for the development and implementation of automation and cloud systems in small business. Lisa is a supporter of women in small business and an active volunteer in the local community. Lisa lives with her husband of 24 years and 3 amazing daughters in Murrumba Downs QLD. She spends her downtime writing blogs and courses on business administration and management, is an avid gamer and loves a good road trip. BBus (hons). BArts (hons). CPA. MIPA. Registered Tax Agent. Registered ASIC Agent. Xero Certified Advisor and Xero Gold Partner.

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