Section 160Income Tax Assessment Act 1997 (Cth)

‑1  What this Division is about

A corporate tax entity can choose to “carry back” a tax loss it had for 2019‑20, 2020‑21, 2021‑22 or 2022‑23 against the income tax liability it had for 2018‑19, 2019‑20, 2020‑21 or 2021‑22.

The entity gets a refundable tax offset for 2020‑21, 2021‑22 or 2022‑23 that is a proxy for the tax the entity would save if it deducted the loss in the income year to which the loss is “carried back”.

The refundable tax offset:

(a) is capped at the entity’s franking account balance; and

(b) is only available for losses for years for which the entity’s turnover was less than $5 billion.

Sourced from the Federal Register of Legislation at 25 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.

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