• What's New

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Repeal of loss carry-back tax offset

    Legislation that repeals the loss carry-back tax offset took effect on 30 September 2014.

    You cannot claim the loss carry-back tax offset for 2013–14.

    The repeal applies from 1 July 2013, other than for certain companies with a late balancing substituted accounting period.

    We will contact companies that have claimed the loss carry-back tax offset and are now no longer eligible.

    See ato.gov.au/companylosscarryback for more information.

    Who must complete the Consolidated groups losses schedule 2014?

    A head company of a consolidated group or multiple entry consolidated (MEC) group must complete the schedule and lodge it with the Company tax return 2014 (NAT 0656), if any of the following apply:

    The total of the group's tax losses and net capital losses carried forward to later income years is greater than $100,000.

    The total of its tax losses and net capital losses transferred from joining entities is greater than $100,000.

    The total of its tax losses deducted and net capital losses applied is greater than $100,000.

    It has an interest in a controlled foreign company (CFC) that has current year losses greater than $100,000.

    It has an interest in a CFC that has deducted or carried forward a loss to later income years greater than $100,000.

    It is a life insurance company and has a total of complying superannuation/first home saver account (FHSA) class tax losses and net capital losses carried forward to later income years greater than $100,000 (complete part D of the schedule).

    It has chosen to carry back tax losses greater than $100,000 in order to obtain a refundable tax offset.

    The examples provided in these instructions are for illustration purposes only and may use lower figures, for simplicity.

    A head company may need to complete the schedule for certain aspects of its net capital losses. While some of the information requested in the schedule is also requested in the Capital gains tax (CGT) schedule 2014 (NAT 3423) (CGT schedule), a head company that completes a consolidated groups losses schedule may also need to complete a CGT schedule.

    If the head company completes the schedule for any aspect of its losses, it must complete all relevant parts of the schedule. For example, if a head company completes the schedule as a result of having tax losses and net capital losses carried forward to later income years greater than $100,000, it must also provide details of controlled foreign company (CFC) losses, even if the total of these losses is less than $100,000.

    These instructions are based on provisions relating to consolidated groups. Some of those provisions are modified in Division 719 of the Income Tax Assessment Act 1997 (ITAA 1997) in relation to MEC groups.

    Last modified: 30 Oct 2014QC 40265