If you're an eligible corporate entity with an early balancer substituted accounting period (SAP) and you want to claim the loss carry back tax offset in your company tax return for the 2021–22 income year before 1 July 2022, these instructions will help you make a loss carry back claim and complete the additional labels we require.
How to make a loss carry back claim
Eligible corporate entities that have an early balancer SAP for the 2021–22 income year can claim the loss carry back tax offset before 1 July 2022.
To make a loss carry back claim for the 2021–22 income year, you can use either:
- Standard Business Reporting (SBR) enabled software which has the additional loss carry back labels we require
- a paper copy of the Company tax return 2021 and attach a Schedule of additional information to report the additional aggregated turnover and loss carry back labels we require.
The instructions will help you complete the loss carry back and aggregated turnover labels.
You can also use the Loss carry back tax offset tool, which – based on the information you give – will provide a report with the labels you need to complete to claim the loss carry back tax offset.
Instructions for completing the labels
If you are lodging before 1 July 2022, these instructions will help you complete the loss carry back and aggregated turnover labels to claim the loss carry back tax offset for the 2021–22 income year.
In this section
- Schedule of additional information
- Aggregated turnover labels – item 8
- Loss carry back labels – item 13
Schedule of additional information
If you are using a paper copy of the Company tax return 2021 to claim the loss carry back tax offset for the 2021–22 income year, you may need to provide information for additional loss carry back and aggregated turnover labels that are not in the Company tax return 2021. To complete these additional labels, you need to:
- record the information and its corresponding label (for example, 'H, item 13') on a separate sheet of paper
- attach the paper to the Company tax return 2021.
Tax loss from the 2020–21 income year
In the Schedule of additional information, if you are carrying back a tax loss from the 2020–21 income year, you will need to write down additional aggregated turnover and loss carry back labels:
- Write 'H, item 13' and the tax rate you used to calculate your income tax liability in the 2020–21 income year.
- Write 'Q, item 13' and your selected aggregated turnover range.
- Write 'R, item 13' and your actual aggregated turnover (if you have selected category P as your aggregated turnover range above or are a significant global entity).
Tax loss from the 2021–22 income year
In the Schedule of additional information, if you are carrying back a tax loss from the 2021–22 income year, you will need to write down these additional loss carry back labels.
If you are choosing to carry back the tax loss to the:
- 2018–19 income year, write 'D, item 13' and the tax losses incurred in the 2021–22 income year that you choose to carry back to the 2018–19 income year
- 2019–20 income year, write 'E, item 13' and the tax losses incurred in the 2021–22 income year that you choose to carry back to the 2019–20 income year
- 2020–21 income year, write
- 'F, item 13' and the tax losses incurred in the 2021–22 income year that you choose to carry back to the 2020–21 income year
- 'K, item 13' and the net exempt income for the 2020–21 income year
- 'N, item 13' and the income tax liability for the 2020–21 income year.
Aggregated turnover labels – item 8
X – Select your aggregated turnover range
You must complete X at item 8 if you are carrying back a tax loss from the 2021–22 income year.
Select a category below based on your aggregated turnover range and write the category code at X. Your aggregated turnover range selected can be either your:
- 2021–22 income year aggregated turnover
- 2020–21 income year aggregated turnover.
Category |
Aggregated annual turnover ranges |
|---|---|
A |
$0 to less than $7.5 million |
B |
$7.5 million to less than $10 million |
C |
$10 million to less than $20 million |
D |
$20 million to less than $40 million |
E |
$40 million to less than $50 million |
F |
$50 million to less than $100 million |
G |
$100 million to less than $200 million |
H |
$200 million to less than $300 million |
I |
$300 million to less than $400 million |
J |
$400 million to less than $500 million |
K |
$500 million to less than $600 million |
L |
$600 million to less than $700 million |
M |
$700 million to less than $800 million |
N |
$800 million to less than $900 million |
O |
$900 million to less than $1 billion |
P |
$1 billion or over |
If you have selected category P, or are a significant global entity and completed label X, you must also complete Y Aggregated turnover.
You will not be penalised for specifying an incorrect category if you make your best attempt to calculate your aggregated turnover.
Y – Aggregated turnover
This question is mandatory if you either:
- have selected category P at label X
- are a significant global entity and completed label X.
Write at Y at item 8 your actual aggregated turnover rounded to the nearest $100 million. Your actual aggregated turnover specified can be either your aggregated turnover for the 2021–22 income year or your 2020–21 income year aggregated turnover.
You will not be penalised for specifying an incorrect amount if you make your best attempt to calculate your aggregated turnover.
Loss carry back labels – item 13
A – Tax loss 2019–20 carried back to 2018–19
B – Tax loss 2020–21 carried back to 2018–19
C – Tax loss 2020–21 carried back to 2019–20
D – Tax loss 2021–22 carried back to 2018–19
E – Tax loss 2021–22 carried back to 2019–20
F – Tax loss 2021–22 carried back to 2020–21
G – Tax rate 2019–20
H – Tax rate 2020–21
L – Income tax liability in 2018–19
M – Income tax liability in 2019–20
N – Income tax liability in 2020–21
O – Aggregated turnover range in 2019–20
P – Aggregated turnover for 2019–20
Q – Aggregated turnover range in 2020–21
R – Aggregated turnover for 2020–21
S – Loss carry back tax offset
A, B, C, D, E and F – Tax losses you choose to carry back
Show at A 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.
Show at B 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.
Show at C 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.
Show at D 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.
Show at E 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.
Show at F 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.
If you are lodging by paper, you will report the amount at D to F in the Schedule of additional information.
You can't carry back the following losses:
- net capital losses
- tax losses that have been transferred under Division 170-A – transfers of losses within certain wholly-owned groups of companies
- tax losses that have been transferred under Subdivision 707-A – transfers to the head entity of a consolidated group by an entity joining the group
- excess franking tax offsets which have been converted into tax losses (refer to section 36-55).
If you need to complete a Losses schedule, the total of the amount you show at A to F must be included at H Tax losses deducted in part F of the Losses schedule.
If a head company of a consolidated or MEC group is required to complete a Consolidated groups losses schedule, the total of the amount shown at A to F must be included in I Tax losses deducted in part F of the Consolidated groups losses schedule.
G – Tax rate 2019–20
Complete G only if you are choosing to carry back a tax loss from the 2019–20 income year.
Write at G 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%.
H – Tax rate 2020–21
Complete H only if you are choosing to carry back a tax loss from the 2020–21 income year.
Write at H 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%.
If you are lodging by paper, you will report this in the Schedule of additional information.
I, J and K – Net exempt income
If you are choosing to carry back a tax loss to the:
- 2018–19 income year, write at I the amount of any unutilised net exempt income that the entity had in the 2018–19 income year
- 2019–20 income year, write at J the amount of any unutilised net exempt income that the entity had in the 2019–20 income year
- 2020–21 income year, write at K the amount of any unutilised net exempt income that you had in the 2020–21 income year. If you are lodging by paper, you will report the amount at K in the Schedule of additional information.
Net exempt income can be derived by subtracting expenditure incurred in deriving exempt income from the amount of all income that is exempt from Australian tax. Net exempt income for an income year is calculated under section 36-20 of the ITAA 1997 and may differ from the amount of exempt income that was shown in that income year's tax return. Don't include an amount of net exempt income that has already been utilised. See subsection 960-20(4) of the ITAA 1997.
L, M and N – Income tax liability
If you are choosing to carry back a tax loss to the 2018–19 income year, show at L the amount of income tax assessed to the entity for the 2018–19 income year. This is the amount assessed at T5 Tax payable in the calculation statement of the Company tax return 2019 or the tax liability after any amendments to the 2018–19 income year.
If you are choosing to carry back a tax loss to the 2019–20 income year, show at M the amount of income tax assessed to the entity for the 2019–20 income year. This is the amount assessed at T5 Tax payable in the calculation statement of the Company tax return 2020 or the tax liability after any amendments to the 2019–20 income year.
If you are choosing to carry back a tax loss to the 2020–21 income year, show at N the amount of income tax assessed to the entity for the 2020–21 income year. This is the amount assessed at T5 Tax payable in the calculation statement of the Company tax return 2021 or the tax liability after any amendments to the 2020–21 income year. If you are lodging by paper, you will report the amount at N in the Schedule of additional information.
O – Select your aggregated turnover range in 2019–20
Complete O and P only if you have made the choice to carry back a tax loss from the 2019–20 income year.
You will not be penalised for specifying an incorrect category if you make your best attempt to calculate your aggregated turnover.
Show at O the category for your aggregated turnover range for the 2019–20 income year. Select a category from the table below based on your aggregated turnover range and write the category code at O. Your aggregated turnover range selected can be either your 2019–20 income year aggregated turnover or your 2018–19 income year aggregated turnover.
Category |
Aggregated annual turnover ranges |
|---|---|
A |
$0 to less than $7.5 million |
B |
$7.5 million to less than $10 million |
C |
$10 million to less than $20 million |
D |
$20 million to less than $40 million |
E |
$40 million to less than $50 million |
F |
$50 million to less than $100 million |
G |
$100 million to less than $200 million |
H |
$200 million to less than $300 million |
I |
$300 million to less than $400 million |
J |
$400 million to less than $500 million |
K |
$500 million to less than $600 million |
L |
$600 million to less than $700 million |
M |
$700 million to less than $800 million |
N |
$800 million to less than $900 million |
O |
$900 million to less than $1 billion |
P |
$1 billion or over |
P – Aggregated turnover
Show at P your actual aggregated turnover rounded to the nearest $100 million if you either:
- selected category P (that is, aggregated turnover $1 billion or over) at O
- are a significant global entity and completed label O.
Your aggregated turnover specified can be either your:
- 2019–20 income year aggregated turnover (the income year you have carried back a tax loss from)
- 2018–19 income year aggregated turnover.
You will not be penalised for specifying an incorrect amount if you make your best attempt to calculate your aggregated turnover.
Q – Select your aggregated turnover range in 2020–21
Complete Q and R only if you have made the choice to carry back a tax loss from 2020–21.
You will not be penalised for specifying an incorrect category if you make your best attempt to calculate your aggregated turnover.
Show at Q the category for your aggregated turnover range for 2020–21. Select a category from the table above based on your aggregated turnover range and write the category code at Q. Your aggregated turnover range selected can be either your 2020–21 aggregated turnover or your 2019–20 aggregated turnover.
If you are lodging by paper, you will report this in the Schedule of additional information.
R – Aggregated turnover
Show at R your actual aggregated turnover rounded to the nearest $100 million if you either:
- selected category P (that is, aggregated turnover $1 billion or over) at Q
- are a significant global entity and completed label Q.
Your aggregated turnover specified can be either your:
- 2020–21 income year aggregated turnover (the income year you have carried back a tax loss from)
- 2019–20 income year aggregated turnover.
If you are lodging by paper, you will report this in the Schedule of additional information.
You will not be penalised for specifying an incorrect amount if you make your best attempt to calculate your aggregated turnover.
S – Loss carry back tax offset
Show at S the amount of your loss carry back tax offset. To calculate the amount, you can use the Loss carry back tax offset tool or follow the method in the Company tax return instructions 2021.
Include this amount at E in the calculation statement.
Instructions for claiming loss carry back for early balancer substituted accounting period.