The government recently announced a loss carry-back measure to encourage new investment. This new law came into effect on the 1st of January 2021 and could influence your company’s business tax.
Your business could claim a refundable tax offset up to the amount of their prior liability only if you had an income tax liability in an applicable year. Cash refunds can be generated by carrying back allocated tax losses but is only relevant to eligible businesses.
Your business is eligible if:
- Your business is a corporate limited partnership, company, or a public trading trust, and was registered as such during the year you want to claim the business tax offset.
- The business had an income tax liability in 2019, 2020 or 2021 financial years.
- The business made a loss in the 2020, 2021 or 2022 financial years.
- The aggregated turnover of the business was less than $5 billion.
- Your tax return lodgement obligations for the last five years are up to date.
It is essential to reach out to your business accountant to discuss the rules around eligibility, integrity, and tax offset calculation and how they influence your company’s business tax. You can only claim the tax loss once, so you must get advice about how and when to apply this measure to your business. Accountants 2 Business know the intricacies of this measure and can help with all your needs. Reach out to the friendly staff today.
The information in this article is general in nature and might not be right for your circumstances. Please arrange a meeting with one of our local Brisbane accountants to discuss your particular needs. Accountants 2 Business Ph (07) 3823 2344
