On 12 May 2026, as part of the 2026–27 Budget, the Australian Government announced it will reintroduce a loss carry back tax offset.
This measure is not yet law.
Under the measure, corporate tax entities with aggregated annual global turnover of less than $1 billion will be able to carry back a tax loss and offset it against tax paid in either or both of the 2 previous income years. Loss carry back will apply to revenue losses only and will be limited by the entity's franking account balance.
The changes will apply to income years starting on or after 1 July 2026. Eligible corporate tax entities will first be able to claim the refundable tax offset in their 2026–27 income tax returns.
For more information, see: