What Are The New Criteria For Loss Carryback?

I’d just like to touch on some changes from last year’s budget. There’s a new strategy that we’re putting into play before the 30th of June called “The Loss Carry Back”.The criteria is if you’re running a company and you’re a small business, if you make a loss in 2021 financial year, after this 30 June, you can apply those losses against prior year profits that you have made to get a tax credit back. I repeat, if you’re a company who made a loss this year you can apply that to your prior profits to get a tax credit back. 

Now, it doesn’t mean you have manual returns, or anything like that, it’s just that we use those losses backwards. 

It’s quite magical, because you’re basically recouping prior tax money that you paid. Now, that’s a massive incentive by the government to essentially help out businesses that got hit really hard during the tough Covid period. And not only they don’t pay taxes here, they get a little bit of the tax back from the last few years as well. Company losses, prior year profit and you get tax back.

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