Company Losses–Small Business Concessions

Refer http://www.ato.gov.au/content/00331932.htm

 

In the 2012-13 Federal Budget, the government announced its intention to provide tax relief for companies by allowing them to carry-back tax losses so they receive a refund against tax previously paid.

A one-year loss carry-back will apply in 2012-13, where tax losses incurred in that year can be carried back and offset against tax paid in 2011-12. For 2013-14 and later years, tax losses can be carried back and offset against tax paid up to two years earlier.

Loss carry-back will:

• be available to companies and entities taxed like companies who elect to carry-back losses
• be capped at $1 million of losses per year
• apply to revenue losses only
• be limited to the company's franking account balance.