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  • Eligibility for the tax offset

    You must meet the eligibility requirements to choose to carry back the loss and claim the tax offset.

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    Eligibility for the tax offset

    Loss carry back tax offset tool

    Eligible entities

    Tax losses and tax liabilities

    Lodgment obligations

    Eligibility for the tax offset

    You can claim the tax offset if you:

    We have made a flowchart to help you work out if you are eligible for the loss carry back tax offset.

    Download the PDF version of the Loss carry back tax offset flow chart (PDF, 300KB)This link will download a file

    View the text version of the Loss carry back tax offset flow chart – Claiming the loss carry back tax offset

    Watch: Your guide to eligibility for the loss carry back measure

    Media: Your guide to eligibility for the loss carry back measure
    http://tv.ato.gov.au/ato-tv/media?v=bi9or7od8z66heExternal Link (Duration: 04m:59s)

    You can find more information on some of the topics mentioned in the video:

    Loss carry back tax offset tool

    You can use the loss carry back tax offset tool to work out if you are eligible to claim the refundable tax offset. It also calculates the maximum amount you can choose to claim if you are eligible.

    The tool will provide you with a printable report that you can keep for your records. This report will help you complete your company tax return as it displays each label you need to complete to make your claim.

    Eligible entities

    You are an eligible corporate entity if you are both a:

    • company, corporate limited partnership or a public trading trust throughout  
      • the income year that you are claiming the tax offset
      • the income year you choose to carry the loss back to (ignoring any part of the year before you existed)
      • any income years in between 
       
    • small business entity in the loss year or would have been a small business entity if the aggregated turnover threshold was $5 billion.

    The rules for calculating aggregated turnover are the same as those used for the small business entity concessions. Your aggregated turnover may include the annual turnover of other business entities, in addition to your own annual turnover.

    Tax losses and tax liabilities

    You can only carry back certain tax losses to certain income years for which you have an income tax liability.

    Tax losses

    You can only carry back tax losses made in the 2019–20, 2020–21 or 2021–22 income years.

    You can only use a tax loss once.

    You cannot carry back:

    Tax liabilities

    You can carry back losses to the 2018–19, 2019–20 or 2020–21 income year if you were liable to pay income tax for that year. Refer to Paying your liabilities and claiming the tax offset.

    Check your eligibility

    The following table shows which income year your tax loss must be made in and which income year you can carry that loss back to.

    Check your eligibility

    Tax liability in the income year

    Tax loss made in 2018–19 or prior income years

    Tax loss made in 2019–20 income year

    Tax loss made in 2020–21 income year

    Tax loss made in 2021–22 income year

    2018–19

    n/a

    Can carry the 2019–20 loss back to the 2018–19 income year

    Can carry the 2020–21 loss back to the 2018–19 income year

    Can carry the 2021–22 loss back to the 2018–19 income year

    2019–20

    Not eligible

    n/a

    Can carry the 2020–21 loss back to the 2019–20 income year

    Can carry the 2021–22 loss back to the 2019–20 income year

    2020–21

    Not eligible

    Not eligible

    n/a

    Can carry the 2021–22 loss back to the 2020–21 income year

    Lodgment obligations

    To claim the tax offset for an income year, you must both:

    • lodge your tax return for that income year
    • have lodged for the previous five income years, refer to Working out the tax offset.

    If you have not lodged for any of those income years, you may still be able to claim the tax offset if for those years, either:

    • we assessed your income tax liability
    • you were not required to lodge a tax return.
    Last modified: 24 Nov 2021QC 66107