The loss carry-back tax offset is a type of tax refund or rebate for eligible Australian companies. This initiative is part of the Government’s strategies to provide temporary cash flow support to businesses impacted by the pandemic.

If you’re eligible for this scheme, it can help you monetise the value of the revenue losses you’ve incurred instead of deferring such losses until you become profitable and can pay your taxes again.

You can use the amount you offset from the loss carry-back scheme in any of the following ways:

  • As a cash refund
  • To reduce your tax liability
  • To reduce the total amount of debt you owe to the ATO


Eligibility criteria

You must meet the following requirements to be eligible for the loss carry-back scheme:

  1. An eligible corporate tax entity
  2. Has suffered from tax losses in the income years 2019-20, 2020-21, 2021-22 or 2022-23.
  3. Had incurred an income tax liability in the income years 2018-19, 2019-20, 2020-21, or 2021-22.
  4. Up-to-date with your income tax lodgement obligations. This means you must:
    • Have lodged your tax return for the income year you’re planning to claim the tax offset.
    • Have lodged returns for the previous five income years.
  5. You’re willing to claim the loss carry-back offset.


When can you carry back your losses?

If you met the above criteria, use the table below as a guide in determining when you can carry back your losses.

Loss Carry Back Tax Offset

Consult with a tax accountant in preparing and lodging your tax returns

ABJ Solutions, in partnership with CMP LWA, are experts in Australian taxation regulations. Our accountants are up-to-date with the latest tax legislation, including the rules in loss carry-back tax offset. Visit our Tax and Compliance page to learn more about our services. You may also contact us today for a more in-depth discussion about our offers.