At Hoffman Kelly, we are dedicated to supporting clients and assisting them to reach their full potential. Our team consistently strives to bring the most current and relevant tax information. In order to help you prepare your business for the end of the financial year, we planned the series of articles Tax Ready with #HoffmanKelly.

The first topic of the series is Loss Carry Back Tax Offset.

In October 2020, the Federal Government introduced a corporate loss carry back tax offset, as part of the road map to assist small businesses to recover from the economic impacts of Covid-19. 

The loss carry back measure rules meant that tax losses incurred during the 2020, 2021 and 2022 financial years could be applied to receive a refund of tax payments from the 2019 financial year onwards (see table below).

Year Tax Losses Incurred
Year Income Tax Paid2019 - 20202020-20212021-2022
2018 - 2019AvailableAvailableAvailable
2019 - 2020-AvailableAvailable
2020 - 2021

As an example, a small business is potentially eligible for the loss carry back when a large equipment purchase during the year creates a tax loss.

At Hoffman Kelly, we pride ourselves on providing outstanding service and tailored tax advice. Our experienced team of accountants can assist in determining whether your business is eligible for the Loss Carry Back Tax Offset and if so, what cashflow benefit the offset might deliver to your business. If you believe you have a tax loss in the 2022 year or are considering a large asset purchase which may create a tax loss, get in touch with your accountant now.

Contact us today by calling (07) 3394 2311 or clicking ‘Contact Us’.