13 May 2026 Federal Budget Annoucements – Reintroduction of Loss Carry-Back for Companies
The Government will reintroduce the loss carry-back regime for most businesses and start-ups, first introduced during the COVID pandemic, and removed in 2023. From 1 July 2026, companies with aggregated annual global turnover of less than $1 billion will be able to carry back a tax loss and offset it against tax paid up to two years earlier. Loss carry-back will apply to revenue losses only and will be limited by a company’s franking account balance.
This measure is expected to directly benefit up to 85,000 companies each year.
This is only an announcement of what the Federal Government is planning to implement – it is not law yet and may change or not proceed subject to its debate and passage through Parliament.