fbpx

All You Need To Know About Change In Loss Carry Back Choice

Do you want to change your loss carry back choice? In case, you have made a loss carry back choice in your company tax return and want to change that original choice, there are some steps you’ll need to follow. This change in choice can sometimes affect your assessments for subsequent income years.

What It Means?

When it comes to changing loss carry back choice, you must take into view the original choice you specified with the correct amount or percentage of the tax loss from a particular income year. If you want to change your loss carry back choice, it must be made in the approved form drafted by the ATO and should be submitted within your time limit for amending your tax assessment.

The change will take effect from the day you made your original loss carry back choice.

Steps To Change Your Choice

The form for changing your loss carry back choice is available on the official website of the Australian Taxation Office. Fill and submit the form to the ATO that include the:

  • name of the corporate entity
  • Australian business number
  • authorised contact’s details, including name and phone number

Effect On Subsequent Income Years

For some businesses, the change in choice can affect your assessments for a few income years. Changing the loss carry back choice comes into effect from the day you made your original choice variation. This may affect:

  • the tax loss amount available to be carried forward for use
  • a loss carry back choice for subsequent income years

You can lodge an amendment request to any company tax return for a subsequent income year you have lodged and affected by the change you made to your original loss carry back choice.

If you need an advice in relation to how the loss carry back rule applies, feel free to contact our tax accountant at KPG Taxation. Talk to us for more information.