Government to re-introduce loss carry back for companies
Liz Gibbs • August 2, 2026

Loss carry-back legislation is currently before Parliament and under review by the Senate Economics Committee.

The Government has also recently introduced legislation to re-introduce the 'loss carry back' measure for companies from 1 July 2026.


If enacted, this will allow most companies to carry back a tax loss and apply it against tax paid in either, or both, of the previous two income years, basically giving rise to a tax refund for the loss year.


The proposed loss carry-back measure was introduced into Parliament on 25 June 2026 and has since been referred to the Senate Standing Committee on Economics for inquiry. The committee is due to report on 13 August 2026, after which the Bill will need to progress through the remaining parliamentary stages before it can become law. Companies should therefore avoid relying on the proposed refund until the legislation has been enacted and the Australian Taxation Office has released final guidance.



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Please also note that many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances. Should you have any further questions, please get in touch with us for assistance with your SMSF, business, bookkeeping and tax requirements. All rights reserved. Brought to you by RGA Business and Tax Accountants. Liability Limited by a scheme approved under Professional Standards Legislation. 

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