Loss Carry-back Incentive
As part of the 2020-21 Federal Budget, the Government announced the loss carry-back temporary measures. If a business paid company tax in FY19 or a later year - you might be able to get ths money back!
What is it?
If a business paid company tax in FY19 or a later income year then it may be able to get this money back (cha-ching) through a temporary measure allowing companies to apply tax losses generated in FY20, FY21 or FY22 against previously taxed profits. This means you get a refund!
Timing:
If relevant to you, you might be able to elect to receive the tax refund when you lodge your FY20, FY21or FY22 tax returns. These rules are weird and complex so get in touch with someone in our Accounting team here to see if this might apply to you or if you want more detail.
☝🏻 Our tip: If you’re after some clarity around how much cash you can expect to get back, creating a forecast for FY21 and FY22 is a great place to start. Get in touch with someone from our Accounting team for some help creating a forecast from scratch or revamping one you already have.