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ATO Publishes Guidance on Claiming Temporary Full Expensing and Loss Carry Back — Orbitax Tax News & Alerts

The Australian Taxation Office has published guidance on how to claim temporary full expensing and loss carry back in the 2020-21 tax return, which was introduced as part of the JobMaker Plan to help businesses recover from the impact of the COVID-19 pandemic.


How to claim temporary full expensing and loss carry back this tax time

Temporary full expensing and loss carry back are two JobMaker Plan temporary measures you may be eligible to claim for your business in your 2020-21 tax return.

To claim, or opt-out of, temporary full expensing or claim loss carry back you will need to complete additional labels in your tax return.

Temporary full expensing

You'll need to include:

  • whether you are making a choice to opt-out of temporary full expensing for some, or all of, your eligible assets
  • the number of assets you are claiming or opting-out for
  • the value of the assets (if applicable)
  • the total amount of your temporary full expensing deduction
  • whether you are using the alternative income test (corporate entities)
  • information about your aggregated turnover.

Loss carry back

Eligible corporate entities (companies, corporate limited partnership or public trading trust) will need to provide the information to make their choice to carry back losses, confirm eligibility, and calculate the refundable tax offset being claimed.

This includes information such as:

  • your opening and closing franking account balance
  • your aggregated turnover for each loss year
  • the amounts of your tax losses that you are carrying back.

You can start preparing early by reviewing:

  • the information you will need to determine your aggregated turnover
  • your franking account.

Our website has information about how to check your eligibility and complete your claims.

See also:

Temporary full expensing

Loss carry back tax offset

JobMaker Plan temporary measures