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, eligible start-up companies with aggregated annual turnover of less than $10 million will be able to utilise their tax losses in each of their first 2 years of operation to claim a refundable tax offset, capped at the amount of PAYG withholding and FBT payments made.
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: