On 12 May 2026, as part of the 2026–27 Federal Budget, the Government announced it will introduce loss refundability for small start-up companies.
This measure is not yet law.
Under the measure, new companies with aggregated turnover of less than $10 million will be able to claim a refund of tax losses in their first 2 years of operation, up to the amount of PAYG withholding and FBT payments made in the year the loss is generated.
The changes will apply to income years starting on or after 1 July 2028. Eligible companies will first be able to claim the refundable tax offset in their 2028–29 income tax returns.
For more information, see: