Loss Carry Back for Small Business
As noted in our September newsletter, starting in the 2012-13 income year, companies (and entities like companies) will be able to carry back up to $1 million of tax losses incurred in the 2012-13 year to offset against tax paid in the 2011-12 income year. From the 2013-14 income year, tax losses will be able to be carried back and offset against tax paid up to two years earlier.
The Federal Government has issued a paper containing the details of what these rules might look like. Legislation is sure to follow soon, so if you think these rules could apply to you, it would be a good idea to start to plan for these rules for when they come in.
You should talk to us about how you might be able to take advantage of these rules and carry back losses your business may have to offset against tax you have paid in prior years.
If you incur losses in the 2012-13 income year, you might be able to carry them back to offset against tax paid in earlier years. Speak to us to see if you are able to do this.
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