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Last updated 26 May 2021

Loss carry back

Loss carry back provides a refundable tax offset that eligible corporate entities can claim in their 2020–21 and 2021–22 Company tax returns.

Eligible entities get the offset by choosing to carry back losses to earlier years in which there were income tax liabilities. The offset effectively represents the tax the eligible entity would save if it was able to deduct the loss in the earlier year using the loss year tax rate. As it is a refundable tax offset, it may result in:

  • a cash refund
  • a reduced tax liability, or
  • a reduction of a debt owing to the ATO.

The eligible entity does not need to amend the earlier income years to claim the offset.

If an entity does not choose to carry back a loss, the loss may be carried forward to use in a later income year. If an entity does choose to carry back some or all of a tax loss, the amount carried back cannot be carried forward to use in a later income year.