Private ruling: Loss carry back tax offset
Date of advice: 22 August 2025
Published: 27 October 2025
Ruling period: 1 July 20XX to 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Pursuant to Division 160 of the Income Tax Assessment Act 1997 (ITAA 1997), are you eligible to utilise the loss carry back tax offset for the income year ended 30 June 20XX? | A1: Yes. Having considered your circumstances and the relevant facts, it is accepted that you meet the criteria set out in Division 160 of the ITAA 1997 and are eligible to carry back losses and claim the tax offset for the year ended 30 June 20XX. The amount of your tax offset may be affected by: • the surplus balance in your franking account at the end of the claim income year - the refundable tax offset is capped at your franking account balance; and • the amount of tax liability in the income year that you are carrying a loss back to • the amount of net exempt income in the income year that you are carrying a loss back to. You do not need to amend the earlier income years to claim the offset. Further information on eligibility for the tax offset can be found by searching 'QC66107' on ato.gov.au

Relevant facts and circumstances: You are a company. Pursuant to section 995-1 and section 960-115 of the ITAA 1997, you were a corporate tax entity from 1 July 20XX to 30 June 20XX. You were a small business entity and carried on a business, which included from 1 July 20XX through to 30 June 20XX. You had an aggregated turnover of less than $5 billion for the year and 30 June 20XX. You had a taxable income of $XXXX for the year ended 30 June 20XX. You generated a loss of $XXXX for the year ended 30 June 20XX. You will lodge your income tax return for the year ended 30 June 20XX to claim the loss carry back tax offset. You have lodged your income tax returns for the 5 previous income years prior to the year ended 30 June 20XX.

Relevant legislative provisions: Income Tax Assessment Act 1997 division 160 | Income Tax Assessment Act 1997 section 160-5 | Income Tax Assessment Act 1997 section 960-115 | Income Tax Assessment Act 1997 subsection 995-1