Australia reintroduces company loss carry-back from 2026-27: refund tax paid in prior 2 years

The 2026-27 Federal Budget (handed down 12 May 2026) reintroduces loss carry-back: from the 2026-27 income year, companies with turnover up to $1 billion that make a tax loss can claim a refund against tax paid in the previous two income years. Treasury estimates up to 85,000 companies, mostly small businesses, will benefit. It applies to losses made in income years starting 1 July 2026.