Offset Current Year Losses against Prior Profits and get a Tax Refund - Companies

Most company owners know that if you make a loss in this year, you can offset it against future profits; but recent tax changes now allow you to offset any losses made this year, against your prior year’s taxable income and receive a tax refund.

Who can claim?

You are eligible to claim if you:

· are a corporate tax entity (company, corporate limited partnership or public trading trust),

· carried on a business with an aggregate turnover less than $5 billion,

· made tax losses in the 2019-20, 2020-21 or 2021-22 income years,

· had an income tax liability in the 2018-19, 2019-20 or 2020-21 income years,

· have a surplus in your franking account at the end of the income year that you are claiming the tax offset for, and

· have lodged all of your past 5 years tax returns.

What you need to do?

Before making a claim, you need to:

· check that you are eligible for the offset,

· review your franking account to ensure it's up to date and accurate,

· make sure you claim the offset at the correct tax rate (the rates have changed a few times over the past few years)

You can use a tax loss only once, so it is important Loss Carry Back claims are made correctly against the right year’s income.

What years are effected?

Loss Year - 2020 Carry back to 2019

Loss Year - 2021 Carry back to 2019 & 2020

Loss Year - 2022 Carry back to 2019, 2020 & 2021

All of our Tax Advisors can assist you in determining whether you can make a claim, calculate the claim given the available franking credits and lodge the claim for you. Feel free to call us on (03) 9585 7555 or email Noel or Amanda at