Loss Carry-back

Written by Saving Point Team

October 7, 2020

In a measure designed to provide cash flow support to previously profitable businesses severely impacted by COVID-19 and now running at a loss, the Government has re-introduces a “loss carry-back” mechanism that will allow corporate tax entities with an aggregated turnover of under $5 billion to carry back losses. Losses from the 2019-20, 2020-21 and 2021-22 income years will be able to be carried back against taxable incomes from the 2018-19, 2019-20 and 2020-21 income years. This will generate a refundable tax offset in the year in which the loss is made.

Your accountant will be able to provide more information on this mechanism.

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