Company Loss Carry-Back: The Return of a Valuable Tax Refund Strategy

Profitable years and loss years rarely arrive on a tidy schedule.

For companies navigating cyclical industries, heavy investment phases or unexpected disruptions, losses in one year after profitable prior years can feel deeply unfair from a tax perspective.

The return of company loss carry-back acknowledges that reality.

How it works

From 2026–27, eligible companies will again be able to offset current-year tax losses against tax paid in previous profitable years.

The result can be a direct cash refund from the ATO.

Rather than carrying losses forward and waiting years for them to become useful, companies may be able to access previously paid tax at a time when they need working capital most.

Who benefits most

Loss carry-back tends to be most valuable for:

• Businesses operating in cyclical industries (construction, hospitality, events, agriculture)
• Growth businesses investing heavily in expansion
• Companies that have recently pivoted or restructured
• Businesses navigating temporary economic disruption

If your company paid meaningful tax in earlier years and is currently experiencing losses, it’s worth understanding whether you qualify.

It doesn’t benefit everyone

Loss carry-back is not available to all business structures. It applies specifically to eligible companies, not trusts or individuals.

Eligibility conditions also apply.

But for those who qualify, it may be one of the most valuable concessions available in the current Budget cycle — and one that’s easy to overlook in all the discussion about larger structural reforms.

We’ll help you identify whether this is relevant to your situation.

Want to talk through what this means for your situation? We’re always only one call away.

Book a conversation with the Lighthouse team → hello@lha.au · 02 9055 1330