How to claim the loss carry back tax offset
If your business is a corporate tax entity (company, corporate limited partnership or public trading trust), you may be eligible to claim the loss carry back tax offset in your 2021 company tax return.
If you’re eligible, you can carry back losses to certain earlier years where there was an income tax liability.
To complete your return you’ll need to know:
- your opening and closing franking balance – your offset is limited by your closing franking account balance, so we recommend you review your franking account balance before lodging your return
- your aggregated turnover
- the amounts of tax losses you’re carrying back
- your tax liability for the income year you’re carrying the losses back to
- any amounts of unutilised net exempt income for the income years you’re carrying the losses back to.
Make sure you complete the additional loss carry back labels in your return which are listed in the Company tax return instructions for 2021.
Instead of carrying back a loss you may choose to carry it forward to use in a later income year. However, a loss can only be used once so make sure to keep accurate records.
Remember, registered tax agents and BAS agents can help you with your tax. If you need assistance or have any queries please get intouch with us.
