The Australian Taxation Office (ATO) has issued guidance on claiming the loss carry back tax offset. Taxpayers must meet the eligibility requirements to choose to carry back the loss and claim the tax offset. Taxpayers can claim the tax offset if the entity:
- is an eligible entity
- made tax losses in the 2019–20, 2020–21 or 2021–22 income years
- had an income tax liability for the 2018–19, 2019–20 or 2020–21 income years
- has met tax return lodgment obligations.
The following table shows which income year tax loss must be made in and which income year taxpayer can carry that loss back to:
| Tax liability in the income year | Tax loss made in 2018–19 or prior income years | Tax loss made in 2019–20 income year | Tax loss made in 2020–21 income year | Tax loss made in 2021–22 income year |
| 2018–19 | N/A | Can carry the 2019–20 loss back to the 2018–19 income year | Can carry the 2020–21 loss back to the 2018–19 income year | Can carry the 2021–22 loss back to the 2018–19 income year |
| 2019–20 | Not eligible | N/A | Can carry the 2020–21 loss back to the 2019–20 income year | Can carry the 2021–22 loss back to the 2019–20 income year |
| 2020–21 | Not eligible | Not eligible | N/A | Can carry the 2021–22 loss back to the 2020–21 income year |
