By Eugene Maslov, Founder and Finance Broker at Lendr360
Published 23 September 2026 · Last reviewed 24 September 2026
A difficult trading year does not necessarily mean that company tax paid during better years is out of reach.
From the 2026–27 income year, eligible Australian companies with turnover of up to $1 billion may be able to carry a tax loss back against tax paid in the previous two income years.
In practical terms, this could produce a refundable tax offset and return cash to an eligible company sooner than waiting to use the loss against future profits.
Who may be eligible?
The measure applies to eligible companies. Sole traders, partnerships and trusts should not assume that the same treatment applies to them.
The potential amount will depend on factors including:
• the company’s tax loss
• taxable profits and tax paid in earlier years
• the company’s turnover and eligibility
• its franking-account balance
• completed lodgements and current records
• the detailed rules applying when the claim is made
It is not necessarily an immediate refund
Although the measure applies from the 2026–27 income year, current ATO guidance indicates that eligible companies will first be able to claim the refundable offset in their 2028–29 income tax returns.
The rules, eligibility and claim timing should therefore be confirmed with an accountant or registered tax agent before including any expected refund in a cash-flow forecast.
Questions to ask your accountant
• Is our company eligible for loss carry back?
• Which losses and previous income years may be considered?
• How much company tax was paid in those years?
• Does our franking-account position limit the potential offset?
• When could a claim be lodged and any refund realistically received?
• How should the expected amount be treated in our cash-flow forecast?
Plan the timing before committing the cash
A potential future refund may improve a company’s longer-term cash-flow outlook, but it should not be treated as certain or immediately available.
Sometimes an expected refund may reduce a future borrowing requirement. In other circumstances, working-capital finance may help bridge the timing gap or protect cash reserves.
Once your registered tax adviser confirms the company’s position, Lendr360 can help consider how any remaining finance requirement fits with the broader business cash-flow plan.
General information only and not tax, legal or financial advice. Eligibility, claim timing and tax outcomes must be confirmed with a registered tax professional. Finance is subject to lender criteria, approval, fees and terms.
Sources and further reading
- Australian Taxation Office — Loss refundability reforms for businesses and start-ups
- Australian Taxation Office — Latest news on tax law and policy
General information only and not tax, legal or financial advice. Eligibility, claim timing and tax outcomes must be confirmed with a registered tax professional.