Offset losses against past profits, and get a 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.

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