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ATO publishes guidance on early loss carry-back, temporary full expensing claims


Practitioners helping clients claim the loss carry-back tax offset before 1 July have been advised to file the claim form five days before lodging the company tax return, as new guidance from the ATO lands.

by Jotham Lian3 minute read

Guidance on how to claim the temporary full expensing and loss carry-back tax offset has now been published by the ATO.

Both measures are intended to interact with each other, with temporary full expensing designed to encourage new investment that might result in a tax loss.

While tax returns lodged on or after 1 July will soon be updated with new labels, businesses who have an early balancer substituted accounting period or need to lodge a tax return for part of the year can now complete specific ATO forms to access the measures before 1 July.

For taxpayers seeking to claim a loss carry-back offset before 1 July, the ATO has recommended lodging the claim form five days before they lodge the company tax return to prevent delays.

“If there’s a refund payable, then well be able to get that refund processed more quickly,” said ATO assistant commissioner Kasey MacFarlane on a recent podcast.

“Now, if people dont actually lodge that form five days before and they say do it two days before or do it at the same time as the tax return, its not that it wont get processed or theyll miss out, but its just that it might take us a little bit longer.”

Businesses looking to claim the loss carry-back tax offset have also been urged to start reviewing their opening and closing franking account balance, their aggregated turnover for each loss year, and the amount of tax losses that they are carrying back.

For businesses accessing temporary full expensing, they will need to work out the number of assets they are claiming or opting out for, the value of the assets, the total amount of their temporary full expensing deduction, information about their aggregated turnover, and whether they are using the alternative income test.

View the ATO’s guidance on the loss carry-back tax offset here and the temporary full expensing here.

ATO publishes guidance on early loss carry-back, temporary full expensing claims
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Jotham Lian

Jotham Lian


Jotham Lian is the editor of Accountants Daily, the leading source of breaking news, analysis and insight for Australian accounting professionals.

Before joining the team in 2017, Jotham wrote for a range of national mastheads including the Sydney Morning Herald, and Channel NewsAsia.

You can email Jotham at: This email address is being protected from spambots. You need JavaScript enabled to view it. 

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