Loss Carry-Back Records Your Clients Need to Keep
In short: From 1 July 2026, Australian companies with aggregated turnover under $1 billion can carry a tax loss back against tax paid in up to two prior income years. Each claim needs five records: the prior-year notices of assessment, a reconciled loss calculation, receipts for major loss-year deductions, a franking account statement and a director-signed narrative of the loss drivers.
Read MoreLoss Carry-Back Returns: Refundable Losses for SMB
The 2026-27 Federal Budget, handed down on 12 May 2026, restores loss carry back for small and medium businesses, giving eligible companies the ability to convert a current-year tax loss into a real cash refund against income tax paid in the previous two financial years. If your company is heading into a loss year after several profitable ones, this measure could put money back in your account rather than leaving it stranded as a carried-forward deduction.
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