The Treasury Laws Amendment (Tax Reform No. 2) Bill 2026, introduced to Parliament on 25 June 2026, lets companies with annual global income under $1 billion carry back a revenue tax loss and offset it against tax paid up to two years earlier, generating a refundable tax offset (capped by the company's franking account balance). It applies to income years beginning on or after 1 July 2026 and is expected to benefit around 85,000 companies a year, mostly small businesses.
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Australia reintroduces company loss carry back for years from 1 July 2026
Why this matters for founders
If your incorporated startup paid company tax in FY2024-25 or FY2025-26 and then runs a loss in FY2026-27 (for example after reinvesting under the instant asset write-off), ask your accountant about claiming a cash refund now instead of just carrying the loss forward.
Source: Treasury Ministers (Second reading speech, Treasurer Jim Chalmers)
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