Document ID: chunk:federal_register_of_legislation:C2021C00270:clause:2_2:p2
Version: federal_register_of_legislation:C2021C00270
Segment Type: clause
Provision Reference: sch 2 cl 2 (pt 2/7)
Character Range: 16484–19018

for the current year in accordance with Subdivision 160‑B.
Note 1: The entity can be entitled to only one loss carry back tax offset for 2020‑21. However, that offset has 2 components: one relating to 2018‑19 and one relating to 2019‑20: see section 160‑10.
Note 2: The entity can be entitled to only one loss carry back tax offset for 2021‑22. However, that offset has 3 components: one relating to 2018‑19, one relating to 2019‑20 and one relating to 2020‑21: see section 160‑10.
Note 3: The loss carry back tax offset is a refundable tax offset: see section 67‑23.

160‑10  Amount of loss carry back tax offset
 (1) The amount of the entity's *loss carry back tax offset for the *current year is the lesser of the following amounts:
 (a) the sum of the *loss carry back tax offset components for:
 (i) the 2018‑19 income year; and
 (ii) the 2019‑20 income year; and
 (iii) if the current year is the 2021‑22 income year—the 2020‑21 income year;
 (b) the entity's *franking account balance at the end of the current year.

Meaning of loss carry back tax offset component
 (2) For the purposes of working out the amount of the entity's *loss carry back tax offset for the *current year, the entity's loss carry back tax offset component for an income year is:
 (a) if the entity does not, in its *loss carry back choice for the current year, *carry back any *tax losses to the income year—nil; or
 (b) otherwise—so much of the entity's *income tax liability for the income year as does not exceed:
 (i) if, in its loss carry back choice for the current year, the entity carries back only one tax loss to the income year—the amount worked out at step 3 of the following method statement in relation to the tax loss; or
 (ii) if, in its loss carry back choice for the current year, the entity carries back tax losses for 2 or 3 *loss years to the income year—the sum of the amounts worked out at step 3 of the following method statement in relation to each of those tax losses.

      Method statement
           Step 1. Start with the amount of the *tax loss the entity *carries back to the income year.
           Step 2. Reduce the step 1 amount by the entity's *net exempt income for the income year.
                  Note: Do not reduce the step 1 amount by the entity's net exempt income to the extent the net exempt income has already been utilised: see section 960‑20.
           Step 3. Multiply the step 2 amount by the *corporate tax rate for the *loss year.
Example: Company A (which is not a base rate entity) has at the