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Loss carry back change in choice schedule instructions 2022

How to complete the Loss carry back change in choice schedule 2022 (NAT 75407) to notify us of a change in choice.

Last updated 27 July 2022

About these instructions

These instructions will help you complete the Loss carry back change in choice schedule 2022 (NAT 75407).

This is necessary to change your loss carry back choice for the 2021–22 income year and amend item 13 of your Company tax return 2022. You need to submit the Loss carry back change in choice schedule 2022 with the amendment request for your Company tax return 2022.

You can use the loss carry back tax offset tool to calculate the maximum tax offset amount you can choose to claim. For more information, see Loss carry back tax offset.

When we refer to ‘you’ in these instructions, we are referring to the person responsible for completing the Loss carry back change in choice schedule 2022.

These instructions are not a guide to income tax law. You can ask for help from us or a recognised tax adviser if you feel these instructions don’t fully cover your circumstances.

What you need to do

To change the original loss carry back choice you made for the 2021–22 income year, you need to:

You cannot use this schedule to change an amount of tax loss that you chose to carry back if that specified amount of tax loss exceeded the amount of unutilised tax losses for that income year. See our guidance on how to contact us in this situation.

Completing the loss carry back change in choice schedule 2022

To notify us of a change to a loss carry back choice for the 2021–22 income year, you need to complete all items including, where applicable:

  • Part A – Choice year column, which relates to the reason for the change in loss carry back choice, the amended loss carry back information and other relevant changes for the 2021–22 income year
  • Part B – Consequential amendments column, which relates to changes to a subsequent income year that are affected by the change you made to your loss carry back choice for the 2021–22 income year – this only needs to be completed if you selected Yes at item 2.

See how to complete:

Item 1 – What is the reason for the change

Select a category from the table below based on the reason for your change in loss carry back choice and print X in the box that corresponds to the category. Where more than one category applies to your circumstances, select the most relevant.

Category

Description

Explanation

A

Excessive losses carried back

You are making a change to your loss carry back choice because you originally carried back losses in excess of the amount necessary to obtain the maximum offset.

B

Prior year tax liability adjustment

You are making a change to your loss carry back choice because there is an increase / decrease adjustment to the tax liability for a prior year, and you either originally chose or now choose to carry a tax loss back to that prior year.

C

Tax loss increase / decrease

You are making a change to your loss carry back choice due to an increase / decrease adjustment to the amount of the tax loss available to be carried back.

D

Additional tax losses carried back

You are making a change to your loss carry back choice to carry back additional losses. The change is not due to an adjustment to either the amount of tax loss available or the tax liability of a prior year.

E

Consequential amendment for prior year change in loss carry back choice

You are making a change to your loss carry back choice as a consequence of a change to a loss carry back choice from a prior year.

 

Example: choose a category based on circumstances

XYZ Co is not a base rate entity. For the 2021–22 income year XYZ Co has a tax loss of $300,000 and makes a choice in its Company tax return 2022 to carry back the $300,000 loss to the 2019–20 income year.

In the 2019–20 income year, XYZ Co had a tax liability of $30,000. As the amount of the tax offset is limited to the $30,000 tax liability, XYZ Co only needs to carry back $100,000 of the tax loss to obtain a $30,000 offset. The original choice utilises a $200,000 loss amount in excess of the amount necessary to obtain the maximum offset.

XYZ Co lodges an amendment request for the 2021–22 income year and a Loss carry back change in choice schedule 2022 to change its loss carry back choice to only carry back $100,000 of the tax loss. In the Loss carry back change in choice schedule 2022, XYZ Co selects A at Item 1.

End of example

Item 2 – If the change results in another amendment request for years where there is a consequential impact

Changing the loss carry back choice for an income year takes effect from the day you made your original loss carry back choice. This may affect:

  • a lodged company tax return for subsequent years because of the change in the amount of tax losses available to be carried forward to use in a later income year
  • a loss carry back choice for subsequent income years because of the change in the amount of tax losses available to be carried back.

Print X in the Yes box if all of the following apply:

  • you have lodged company tax returns for subsequent years
  • the change you made to your original loss carry back choice
    • affects those lodged company tax returns for subsequent years
    • does not affect a loss carry back choice for the 2022–23 income year.
     

Print X in the No box if the change you made to your original loss carry back choice either:

  • affects your loss carry back choice for the 2022–23 income year – you will need to lodge an amendment request for the 2022–23 income year and attach a Loss carry back change in choice schedule 2023 to your amendment request for the 2022–23 income year
  • does not affect any of the lodged company tax returns for subsequent years.

If you select Yes, you must complete the relevant labels in the Part B – Consequential amendments column for each of the income years that are affected by the change to your loss carry back choice for the 2021–22 income year.

Item 3 – Loss carry back information

You need to complete all the labels that are relevant to making and changing your loss carry back choice for the 2021–22 income year. See How to claim the tax offset on what information you need to provide and Company tax return instructions 2022 on how to complete the additional labels to provide the information needed.

A, B, C, D, E, F – Tax losses you choose to carry back

You need to provide the amounts of your tax losses that you choose to carry back for the 2021–22 income year, taking into account the changes to your loss carry back choice for the 2021–22 income year. If the amount has been changed, use the amount from your amendment request for Company tax return 2022. If the amount has not changed, use the amount from your original Company tax return 2022.

  • At label A, write the amount of tax losses incurred in the 2019–20 income year that you are choosing to carry back to the 2018–19 income year as part of your change in loss carry back choice. See instructions for item 13 – label A in Company tax return instructions 2022.
  • At label B, write the amount of tax losses incurred in the 2020–21 income year that you are choosing to carry back to the 2018–19 income year as part of your change in loss carry back choice. See instructions for item 13 – label B in Company tax return instructions 2022.
  • At label C, write the amount of tax losses incurred in the 2020–21 income year that you are choosing to carry back to the 2019–20 income year as part of your change in loss carry back choice. See instructions for item 13 – label C in Company tax return instructions 2022.
  • At label D, write the amount of tax losses incurred in the 2021–22 income year that you are choosing to carry back to the 2018–19 income year as part of your change in loss carry back choice. See instructions for item 13 – label D in Company tax return instructions 2022.
  • At label E, write the amount of tax losses incurred in the 2021–22 income year that you are choosing to carry back to the 2019–20 income year as part of your change in loss carry back choice. See instructions for item 13 – label E in Company tax return instructions 2022.
  • At label F, write the amount of tax losses incurred in the 2021–22 income year that you are choosing to carry back to the 2020–21 income year as part of your change in loss carry back choice. See instructions for item 13 – label F in Company tax return instructions 2022.

K, L, M – Net exempt income

You need to provide the amounts of the unutilised net exempt income for the income years that you are carrying back a tax loss to. If the amount has been changed, use the amount from your amendment request for Company tax return 2022. If the amount has not changed, use the amount from your original Company tax return 2022.

  • At label K, write the amount of any unutilised net exempt income that you had in the 2018–19 income year. See instructions for item 13 – label I in Company tax return instructions 2022.
  • At label L, write the amount of any unutilised net exempt income that you had in the 2019–20 income year. See instructions for item 13 – label J in Company tax return instructions 2022.
  • At label M, write the amount of any unutilised net exempt income that you had in the 2020–21 income year. See instructions for item 13 – label K in Company tax return instructions 2022.

O, P, Q – Income tax liability

You need to provide the amounts of the income tax assessed to you for the income years that you are carrying back a tax loss to. If the amount has been changed, use the amount from your amendment request for Company tax return 2022. If the amount has not changed, use the amount from your original Company tax return 2022.

  • At label O, write the amount of income tax assessed to you for the 2018–19 income year. See instructions for item 13 – label L in Company tax return instructions 2022.
  • At label P, write the amount of income tax assessed to you for the 2019–20 income year. See instructions for item 13 – label M in Company tax return instructions 2022.
  • At label Q, write the amount of income tax assessed to you for the 2020–21 income year. See instructions for item 13 – label N in Company tax return instructions 2022.

S, T – Franking account balance

You need to provide the balance of the franking account at the beginning and the end of 2021–22. If the amount has been changed, use the amount from your amendment request for Company tax return 2022. If the amount has not changed, use the amount from your original Company tax return 2022.

  • At label S, write the balance of the franking account at the beginning of 2021–22. See instructions for item 8 – label P in Company tax return instructions 2022.
  • At label T, write the balance of the franking account at the end of 2021–22. See instructions for item 8 – label M in Company tax return instructions 2022.

U, V – Tax rates

You need to provide the tax rates that applied to you for the income years that you are choosing to carry back a tax loss from, except for 2021–22.

  • At label U, write the tax rate that applied to you in the 2019–20 income year. For base rate entities, the tax rate in the 2019–20 income year is 27.5%. See instructions for item 13 – label G in Company tax return instructions 2022.
  • At label V, write the tax rate that applied to you in the 2020–21 income year. For base rate entities, the tax rate in the 2020–21 income year is 26%. See instructions for item 13 – label H in Company tax return instructions 2022.

X – Loss carry back offset

At label X, write the amount of your changed loss carry back tax offset for item 13 – label S from your amendment request for Company tax return 2022.

Item 4 – Tax losses carried back

You need to disclose the change in total amount of losses carried back between your original loss carry back choice for the 2021–22 income year and your change in loss carry back choice for the 2021–22 income year.

Calculate the change in the total amount of losses carried back from your original disclosure as follows:

Step 1: Work out the total amount of losses you originally carried back by adding the amounts at label A, B, C, D, E and F, item 13 in your original Company tax return 2022.

Step 2: Work out the total amount of losses you are carrying back in your change in choice by adding the amounts at label A, B, C, D, E and F, item 3 in this schedule.

Step 3: Subtract the result of step 1 from step 2.

Print X in the Increase box at label A if the result of step 3 is positive. Print X in the Decrease box at label A If the result is negative or zero.

At label B, write the amount of the result of step 3 in whole dollars.

Item 5 – Tax losses deducted

Complete the Part A – choice year column where tax losses have been deducted in the 2021–22 income year.

Complete the Part B – consequential amendments column where you have selected Yes at item 2. Complete this item for each subsequent year where tax losses have been deducted in the original or amended company return for the relevant year. If you are required to lodge a Loss carry back change in choice schedule 2023, you do not need to complete Part B – consequential amendments column in this schedule.

For each income year, calculate the change in tax losses deducted by subtracting the amount of the tax losses deducted at item 7 – label R in the original company tax return for that income year from the new amount of total tax losses deducted at item 7 – label R in your amendment request for that income year.

At label A, print X in the:

  • Increase box if the change in tax losses deducted is positive
  • Decrease box if the change in tax losses deducted is negative
  • No change box if there is no change in tax losses deducted.

At label B, write the amount of the change in tax losses deducted in whole dollars. You do not need to complete this if you select No change at label A.

At label C, write the amount of tax losses deducted at item 7 – label R in your amendment request for the relevant income year. You do not need to complete this if you select No change at label A.

Item 6 – Other adjustments

There is no Part A – choice year column for this item.

Complete the Part B – consequential amendments column where you have selected Yes at item 2. Complete this item for each subsequent year that you have lodged a company tax return and that company tax return is affected by the change to your loss carry back choice for the 2021–22 income year. If you are required to lodge a Loss carry back change in choice schedule 2023, you do not need to complete Part B – consequential amendments column in this schedule.

For each income year in Part B – consequential amendments column, print X in the:

  • Yes box at label A if there are other adjustments to the taxable / net income or loss in addition to amounts shown at item 5
  • No box at label A if there are no other adjustments to the taxable/net income or loss.

For each income year in Part B – consequential amendments column where you have selected Yes at label A, print X in the:

  • Increase box at label B if there is an increase in taxable / net income or a decrease in tax / net loss as a result of the other adjustments
  • Decrease box at label B if there is a decrease in taxable / net income or an increase in tax / net loss as a result of the other adjustments.

At label C, write the net amount of any adjustments to taxable/net income or loss due to reasons other than changing a loss carry back choice. Do not include any amounts already disclosed at item 5.

Item 7 – Taxable / net income or loss information

Complete the Part A – choice year column in relation to the 2021–22 income year.

Complete the Part B – consequential amendments column where you have selected Yes at item 2. Complete this item for each subsequent year that you have lodged a company tax return and that company tax return is affected by the change to your loss carry back choice for the 2021–22 income year. If you are required to lodge a Loss carry back change in choice schedule 2023, you do not need to complete Part B – consequential amendments column in this schedule.

For each income year, calculate the change in taxable / net income or loss by subtracting the amount of the taxable/net income or loss at item 7 – label T in the original company tax return for that income year from the new amount of the taxable / net income or loss at item 7 – label T in your amendment request for that income year.

At label A, print X in the:

  • Increase box if the change in taxable/net income or loss is positive
  • Decrease box if the change in taxable/net income or loss is negative
  • No change box if there is no change in taxable/net income or loss.

At label B, write the amount of the change in taxable / net income or loss in whole dollars. You do not need to complete this if you select No change at label A.

At label C, write the amount of taxable/net income or loss at item 7 – label T in your amendment request for the relevant income year. You do not need to complete this if you select No change at label A.

At label D, write L if the amount of taxable/net income or loss at item 7 – label T in your amendment request for the relevant income year is a loss. Otherwise, do not complete this label.

Item 8 – Tax losses carried forward to later income years

Complete Part A – choice year column in relation to the 2021–22 income year.

Complete Part B – consequential amendments column where you have selected Yes at item 2. Complete this item for each subsequent year that you have lodged a company tax return and that company tax return is affected by the change to your loss carry back choice for the 2021–22 income year. If you are required to lodge a Loss carry back change in choice schedule 2023, you do not need to complete Part B – consequential amendments column in this schedule.

For each income year, calculate the change in tax losses carried forward to later income years by subtracting the amount of tax losses carried forward at item 13 – label U in the original company tax return from the new amount of tax losses carried forward at item 13 – label U in your amendment request for that income year.

At label A, print X in the:

  • Increase box if the change in tax losses carried forward to later income years is positive
  • Decrease box if the change in tax losses carried forward to later income years is negative
  • No change box if there is no change in tax losses carried forward to later income years.

At label B, write the amount of the change in tax losses carried forward to later income years in whole dollars. You do not need to complete this if you select No change at label A.

At label C, write the amount of tax losses carried forward to later income years at item 13 – label U in your amendment request for the relevant income year. You do not need to complete this if you select No change at label A.

Taxpayer's declaration

If you do not lodge the schedule with your amendment request, you must sign and date page 4 of the schedule.

Examples

Example 1: Changing the loss carry back choice for one income year

JKL Co is not a base rate entity. For the 2020–21 income year, JKL Co has a taxable income of $300,000, no net exempt income and income tax liability of $90,000.

For the:

  • 2021–22 income year
    • JKL Co has a tax loss of $800,000 and chooses to carry back $300,000 of that loss to the 2020–21 income year
    • the amount of its tax offset is worked out to be $90,000
    • the amount of tax loss carried forward is $500,000
    • the amount of its opening franking account balance is $400,000
    • the amount of its closing franking account balance is $422,500
     
  • 2022–23 income year
    • JKL Co has taxable income (before deducting tax losses) of $60,000
    • after deducting $60,000 of the tax loss it carried forward, it has no taxable income and carries forward the remaining tax loss of $440,000
     
  • 2023–24 income year
    • JKL Co has taxable income (before deducting tax losses) of $290,000
    • after deducting $290,000 of the tax loss it carried forward, it has no taxable income and carries forward the remaining tax loss of $150,000.
     

JKL Co's assessment for the 2020–21 income year is subsequently amended to increase the taxable income to $600,000, resulting in tax payable of $180,000.

JKL Co wants to change its original loss carry back choice for the 2021–22 income year to increase the amount of tax loss carried back to the 2020–21 income year from $300,000 to $600,000. The tax offset for the 2021–22 income year is increased to $180,000 and the amount of tax loss carried forward is reduced by $300,000 to $200,000.

As a result:

  • JKL Co will still have no taxable income in the 2022–23 income year but the tax loss remaining to be carried forward in the 2022–23 income year is reduced by $300,000 to $140,000
  • for the 2023–24 income year, JKL Co will have $140,000 of tax loss available to be deducted, resulting in a reduction in tax losses deducted by $150,000, an increase in taxable income by $150,000 to $150,000 and a decrease in tax losses carried forward to later years by $150,000 to $0.

JKL Co:

  • notifies us of the change in loss carry back choice by completing a Loss carry back change in choice schedule 2022 and lodging it with an amendment request for Company tax return 2022
  • lodges an amendment request for Company tax return 2024, as JKL Co only has $140,000 of tax loss available to be deducted, resulting in a taxable income of $150,000.

JKL Co completes the Loss carry back change in choice schedule 2022 as follows:

  • at item 1, JKL Co selects B as it is changing the loss carry back choice due to an adjustment to the tax liability for the 2020–21 income year
  • at item 2, JKL Co prints X in the Yes box as it has lodged the company tax return for the 2022–23 and 2023–24 income year and the change in loss carry back choice affects the company tax return for the 2023–24 income year but does not affect a loss carry back change in choice for the 2022–23 income year
  • at item 3, JKL Co completes the following labels which are relevant to making and changing its loss carry back choice for the 2021–22 income year
    • label F Tax loss in 2021–22 carried back to 2020–21 with $600,000
    • label M Net exempt income 2020–21 with $0
    • label Q Income tax liability for 2020–21 with $180,000
    • label S Opening franking account balance with $400,000
    • label T Closing franking account balance with $422,500
    • label X Loss carry back tax offset with $180,000
     
  • at item 4, JKL Co
    • prints X in the Increase box at label A because it is increasing the total amount of tax losses carried back as a result of its change in loss carry back choice
    • writes $300,000 at label B, which is the difference between the original amount of $300,000 and the new amount of $600,000
     
  • at item 5, JKL Co completes
    • Part A – choice year column
      • as there is no change in total tax losses deducted in the 2021–22 income year, JKL Co prints X in the No change box at label A and leaves label B and label C blank
       
    • Part B – consequential amendments column, but only for 2023 and 2024 as they are the only years where the company tax returns have been lodged and are affected by the change in loss carry back choice
      • as there is no change in total tax losses deducted in the 2022–23 income year, JKL Co prints X in the No change box at label A, and leaves label B and C blank
      • for the 2023–24 income year, as there is a reduction in tax losses available to be deducted, JKL Co prints X in the Decrease box at label A and writes the difference of $150,000 at label B and the amount of $140,000 at label C
       
     
  • at item 6, JKL Co completes
    • Part B – consequential amendments column, but only for 2023 and 2024 as they are the only years where the company tax returns have been lodged and are affected by the change in loss carry back choice
      • as there are no other adjustments to taxable/net income or loss for the 2022–23 income year, JKL Co prints X in the No box at label A and leaves label B and C blank
      • as there are no other adjustments to taxable/net income or loss for the 2023–24 income year in addition to the amounts shown at item 5, JKL Co prints X in the No box at label A and leaves label B and C blank
       
     
  • at item 7, JKL Co completes
    • Part A – choice year column
      • as there is no change in the amount of taxable/net income or loss for the 2021–22 income year, JKL Co prints X in the No change box at label A and leaves label B, C and D blank
       
    • Part B – consequential amendments column, but only for 2023 and 2024 as they are the only years where the company tax returns have been lodged and are affected by the change in loss carry back choice
      • as there is no change in the amount of taxable/net income or loss for the 2022–23 income year, JKL Co prints X in the No change box at label A, and leaves label B, C and D blank
      • for the 2023–24 income year, as there is an increase in taxable / net income due to the change in choice for 2021–22, JKL Co prints X in the Increase box at A, writes the difference of $150,000 at B and $150,000 at C, and leaves D blank
       
     
  • at item 8, JKL Co completes:
    • Part A – choice year column
      • as there is a decrease in tax losses carried forward to later years from the 2021–22 income year, JKL Co prints X in the Decrease box at label A, writes the difference of $300,000 at label B and the new amount of tax losses carried forward to later years of $200,000 at label C
       
    • Part B – consequential amendments column, but only for 2023 and 2024 as they are the only years where the company tax returns have been lodged and are affected by the change in loss carry back choice
      • as there is a decrease in tax losses carried forward to later years from the 2022–23 income year, JKL Co prints X in the Decrease box at label A, writes the difference of $300,000 at label B and the new amount of tax losses carried forward to later years of $140,000 at label C
      • as there is a decrease in tax losses carried forward to later years from the 2023–24 income year, JKL Co prints X in the Decrease box at label A, writes the difference of $150,000 at label B and the new amount of tax losses carried forward to later years of $0 at label C.
       
     
End of example

 

Example 2: Changing 2 loss carry back choices

MNO Co is not a base rate entity. For the 2019–20 income year, MNO Co has a taxable income of $50,000, no net exempt income and income tax liability of $15,000.

For the:

  • 2020–21 income year
    • MNO Co has a tax loss of $20,000 and chooses to carry back all of that loss to the 2019–20 income year
    • the amount of its tax offset is worked out to be $6,000
    • there are no remaining tax losses to be carried forward
    • the amount of its opening franking account balance is $3,000
    • the amount of its closing franking account balance is $18,000
     
  • 2021–22 income year
    • MNO Co has a tax loss of $30,000 and chooses to carry back all of that loss to the 2019–20 income year
    • the amount of its tax offset is worked out to be $9,000
    • there are no remaining tax losses to be carried forward
    • the amount of its opening franking account balance is $18,000
    • the amount of its closing franking account balance is $12,000.
     

MNO Co identifies an error in its franking account. Specifically, the closing franking account balance included a credit for a tax liability of $15,000 that was paid after 1 July 2021. Consequently, MNO Co's correct closing franking account balance at the end of the 2020–21 income year is $3,000 and the maximum amount of its loss carry back tax offset is reduced to $3,000.

MNO Co only needs to carry back $10,000 to obtain the $3,000 tax offset and requests a change to its 2021 loss carry back choice to reduce the 2020–21 losses carried back to 2019–20 to $10,000. The balance of $10,000 tax losses can be carried forward to later income years. MNO Co also wants to change its 2021–22 loss carry back choice to carry back the $10,000 tax loss from the 2020–21 income year.

MNO Co notifies us of:

  • the change in loss carry back choice for the 2020–21 income year by completing a Loss carry back change in choice schedule 2021 and lodging it with an amendment request for Company tax return 2021
  • the change in loss carry back choice for the 2021–22 income year by completing a Loss carry back change in choice schedule 2022 and lodging it with an amendment request for Company tax return 2022.

As MNO Co is lodging a loss carry back change in choice schedule for the 2020–21 and the 2021–22 income years and there are no other consequential amendments for other income years, MNO Co only needs to complete Part A – choice year column in each loss carry back change in choice schedule.

MNO Co completes the Loss carry back change in choice schedule 2021 as follows:

  • at item 1, MNO Co selects A as it is changing the loss carry back choice because it was carrying back more losses than needed to claim the maximum amount of the tax offset
  • at item 2, MNO Co prints X in the No box because, while it has lodged the company tax return for the 2021–22 income year and the company tax return for the 2021–22 income year is affected by the change in loss carry back choice, it is lodging a loss carry back change in choice schedule for the 2021–22 income year
  • at item 3, MNO Co completes the following labels which are relevant to making and changing its loss carry back choice for the 2020–21 income year:
    • label C Tax loss in 2020–21 carried back to 2019–20 with $10,000
    • label L Net exempt income 2019–20 with $0
    • label P Income tax liability for 2019–20 with $15,000
    • label S Opening franking account balance with $3,000
    • label T Closing franking account balance with $3,000
    • label X Loss carry back tax offset with $3,000
     
  • at item 4, MNO Co
    • prints X in the Decrease box at label A because it is decreasing the total amount of tax losses carried back as a result of its change in loss carry back choice
    • writes $10,000 at label B, which is the difference between the original amount of $20,000 and the new amount of $10,000
     
  • at item 5, MNO Co
    • prints X in the No change box at label A as there is no change in total tax losses deducted in the 2020–21 income year
    • leaves B and C blank
     
  • MNO Co is not required to complete item 6
  • at item 7, MNO Co
    • prints X in the No change box at label A as there is no change in the amount of taxable/net income or loss for the 2020–21 income year
    • leaves label B, C and D blank
     
  • at item 8, MNO Co
    • prints X in the Increase box at label A as there is an increase in tax losses carried forward to later years from the 2020–21 income year
    • writes the difference of $10,000 at label B
    • writes the new amount of tax losses carried forward to later years of $10,000 at label C.
     

MNO Co completes the Loss carry back change in choice schedule 2022 as follows:

  • at item 1, MNO Co selects E as it is changing the loss carry back choice due to the change to its loss carry back choice for the 2020–21 income year
  • at item 2, MNO Co prints X in the No box because it has not lodged a company tax return for a subsequent year
  • at item 3, MNO Co completes the following labels which are relevant to making and changing its loss carry back choice for the 2021–22 income year
    • label C Tax loss in 2020–21 carried back to 2019–20 with $10,000
    • label F Tax loss in 2021–22 carried back to 2019–20 with $30,000
    • label L Net exempt income 2019–20 with $0
    • label P Income tax liability for 2019–20 with $15,000
    • label S Opening franking account balance with $3,000
    • label T Closing franking account balance with $12,000
    • label V Tax rate 2020–21 with 30%
    • label X Loss carry back tax offset with $12,000
     
  • at item 4, MNO Co
    • prints X in the Increase box at label A because it is increasing the total amount of tax losses carried back as a result of its change in loss carry back choice
    • writes $10,000 at B, which is the difference between the original amount of $30,000 and the new amount of $40,000
     
  • at item 5, MNO Co
    • prints X in the No change box at label A as there is no change in total tax losses deducted in the 2021–22 income year
    • leaves label B and C blank
     
  • MNO Co is not required to complete item 6
  • at item 7, MNO Co
    • prints X in the No change box at label A as there is no change in the amount of taxable / net income or loss for the 2021–22 income year
    • leaves label B, C and D blank
     
  • at item 8, MNO Co
    • prints X in the No change box at label A as there is still no losses to be carried forward to later years from the 2021–22 income year
    • leaves label B and C blank.
     
End of example

QC69993