Completing the loss carry back change in choice schedule

Instructions to complete the loss carry back change in choice schedule.

Completing the schedule

To notify us of a change to a loss carry back choice for the 2020–21 income year, you need to complete all items including, where applicable:

• Part A – Choice year column, which relates to the reason for the change in loss carry back choice, the amended loss carry back information and other relevant changes for the 2020–21 income year
• Part B – Consequential amendments column, which relates to changes to a subsequent income year that are affected by the change you made to your loss carry back choice for the 2020–21 income year – this only needs to be completed if you show Yes at item 2.

Item 1 – What is the reason for the change

Select a category from the table below based on the reason for your change in loss carry back choice and print X in the box that corresponds to the category. Where more than one category applies to your circumstances, select the most relevant.

Category	Description	Explanation
A	Excessive losses carried back	You are making a change to your loss carry back choice because you originally carried back losses in excess of the amount necessary to obtain the maximum offset.
B	Prior year tax liability adjustment	You are making a change to your loss carry back choice because there is an increase / decrease adjustment to the tax liability for a prior year, and you either originally chose or now choose to carry a tax loss back to that prior year.
C	Tax loss increase/decrease	You are making a change to your loss carry back choice due to an increase / decrease adjustment to the amount of the tax loss available to be carried back.
D	Additional tax losses carried back	You are making a change to your loss carry back choice to carry back additional losses. The change is not due to an adjustment to either the amount of tax loss available or the tax liability of a prior year.
E	Consequential amendment for prior year change in loss carry back choice	You are making a change to your loss carry back choice as a consequence of a change to a loss carry back choice from a prior year.

 

Item 2 – Will the change result in another amendment request for years where there is a consequential impact?

Changing the loss carry back choice for an income year takes effect from the day you made your original loss carry back choice. This may affect:

• a lodged company tax return for subsequent years because of the change in the amount of tax losses available to be carried forward to use in a later income year
• a loss carry back choice for subsequent income years because of the change in the amount of tax losses available to be carried back.

Print X in the Yes box if all of the following apply:

• you have lodged company tax returns for subsequent years
• the change you made to your original loss carry back choice    
  • affects those lodged company tax returns for subsequent years
  • does not affect a loss carry back choice for the 2021–22 income year.

Print X in the No box if the change you made to your original loss carry back choice either:

• affects your loss carry back choice for the 2021–22 income year – you will need to lodge an amendment request for the 2021–22 income year and attach a Loss carry back change in choice schedule 2022 to your amendment request for the 2021–22 income year
• does not affect any of the lodged company tax returns for subsequent years.

If you select Yes, you must complete the relevant labels in the Part B – Consequential amendments column for each of the income years that are affected by the change to your loss carry back choice for the 2020–21 income year.

Item 3 – Loss carry back information

You need to complete all the labels that are relevant to making and changing your loss carry back choice for the 2020–21 income year. See How to claim the tax offset on what information you need to provide and Company tax return instructions 2021 on how to complete the additional labels to provide the information needed.

In this section

• A, B, C – Tax losses you choose to carry back
• K, L – Net exempt income
• O, P – Income tax liability
• S, T – Franking account balance
• U – Tax rate 2019-20
• X – Loss carry back offset

A, B, C – Tax losses you choose to carry back

You need to provide the amounts of your tax losses that you choose to carry back for the 2020–21 income year, taking into account the changes to your loss carry back choice for the 2020–21 income year. If the amount has been changed, use the amount from your amendment request for Company tax return 2021. If the amount has not changed, use the amount from your original Company tax return 2021.

• At label A, write the amount of tax losses incurred in the 2019–20 income year that you are choosing to carry back to the 2018–19 income year as part of your change in loss carry back choice. See instructions for item 13 – label A in Company tax return instructions 2021.
• At label B, write the amount of tax losses incurred in the 2020–21 income year that you are choosing to carry back to the 2018–19 income year as part of your change in loss carry back choice. See instructions for item 13 – label B in Company tax return instructions 2021.
• At label C, write the amount of tax losses incurred in the 2020–21 income year that you are choosing to carry back to the 2019–20 income year as part of your change in loss carry back choice. See instructions for item 13 – label C in Company tax return instructions 2021.

K, L – Net exempt income

You need to provide the amounts of the unutilised net exempt income for the income years that you are carrying back a tax loss to. If the amount has been changed, use the amount from your amendment request for Company tax return 2021. If the amount has not changed, use the amount from your original Company tax return 2021.

• At label K, write the amount of any unutilised net exempt income that you had in the 2018–19 income year. See instructions for item 13 – label I in Company tax return instructions 2021.
• At label L, write the amount of any unutilised net exempt income that you had in the 2019–20 income year. See instructions for item 13 – label J in Company tax return instructions 2021.

O, P – Income tax liability

You need to provide the amounts of the income tax assessed to you for the income years that you are carrying back a tax loss to. If the amount has been changed, use the amount from your amendment request for Company tax return 2021. If the amount has not changed, use the amount from your original Company tax return 2021.

• At label O, write the amount of income tax assessed to you for the 2018–19 income year. See instructions for item 13 – label L in Company tax return instructions 2021.
• At label P, write the amount of income tax assessed to you for the 2019–20 income year. See instructions for item 13 – label M in Company tax return instructions 2021.

S, T – Franking account balance

You need to provide the balance of the franking account at the beginning and the end of 2020–21. If the amount has been changed, use the amount from your amendment request for Company tax return 2021. If the amount has not changed, use the amount from your original Company tax return 2021.

• At label S, write the balance of the franking account at the beginning of 2020–21. See instructions for item 8 – label P in Company tax return instructions 2021.
• At label T, write the balance of the franking account at the end of 2020–21. See instructions for item 8 – label M in Company tax return instructions 2021.

U – Tax rate 2019-20

You need to provide the tax rate that applied to you for the 2020-21 income year if you are choosing to carry back a tax loss from 2019-20.

• At label U, write the tax rate that applied to you in the 2019–20 income year. For base rate entities, the tax rate in the 2019–20 income year is 27.5%. See instructions for item 13 – label G in Company tax return instructions 2021.

X – Loss carry back offset

At label X, write the amount of your changed loss carry back tax offset for item 13 – label S from your amendment request for Company tax return 2021.

Item 4 – Tax losses carried back

You need to disclose the change in total amount of losses carried back between your original loss carry back choice for the 2020–21 income year and your change in loss carry back choice for the 2020–21 income year.

Calculate the change in the total amount of losses carried back from your original disclosure as follows:

Step 1: Work out the total amount of losses you originally carried back by adding the amounts at label A, B, and C, item 13 in your original Company tax return 2021.

Step 2: Work out the total amount of losses you are carrying back in your change in choice by adding the amounts at label A, B, and C, item 3 in this schedule.

Step 3: Subtract the result of step 1 from step 2.

Print X in the Increase box at label A if the result of step 3 is positive. Print X in the Decrease box at label A If the result is negative or zero.

At label B, write the amount of the result of Step 3 in whole dollars.

Item 5 – Tax losses deducted

Complete the Part A – choice year column where tax losses have been deducted in the 2020–21 income year.

Complete the Part B – consequential amendments column where you have selected Yes at item 2. Complete this item for each subsequent year where tax losses have been deducted in the original or amended company return for the relevant year. If you are required to lodge a Loss carry back change in choice schedule 2022, you do not need to complete Part B – consequential amendments column in this schedule.

For each income year, calculate the change in tax losses deducted by subtracting the amount of the tax losses deducted at item 7 – label R in the original company tax return for that income year from the new amount of total tax losses deducted at item 7 – label R in your amendment request for that income year.

At label A, print X in the:

• Increase box if the change in tax losses deducted is positive
• Decrease box if the change in tax losses deducted is negative
• No change box if there is no change in tax losses deducted.

At label B, write the amount of the change in tax losses deducted in whole dollars. You do not need to complete this if you select No change at label A.

At label C, write the amount of tax losses deducted at item 7 – label R in your amendment request for the relevant income year. You do not need to complete this if you select No change at label A.Item 6 – Other adjustments

There is no Part A – choice year column for this item.

Complete the Part B – consequential amendments column where you have selected Yes at item 2. Complete this item for each subsequent year that you have lodged a company tax return and that company tax return is affected by the change to your loss carry back choice for the 2020–21 income year. If you are required to lodge a Loss carry back change in choice schedule 2022, you do not need to complete Part B – consequential amendments column in this schedule.

For each income year in Part B – consequential amendments column, print X in the:

• Yes box at label A if there are other adjustments to the taxable / net income or loss in addition to amounts shown at Item 5
• No box at label A if there are no other adjustments to the taxable / net income or loss.

For each income year in Part B – consequential amendments column where you have selected Yes at label A, print X in the:

• Increase box at label B if there is an increase in taxable / net income or a decrease in tax / net loss as a result of the other adjustments
• Decrease box at label B if there is a decrease in taxable / net income or an increase in tax / net loss as a result of the other adjustments.

At label C, write the net amount of any adjustments to taxable / net income or loss due to reasons other than changing a loss carry back choice. Do not include any amounts already disclosed at Item 5.

Item 7 – Taxable/net income or loss information

Complete the Part A – choice year column in relation to the 2020–21 income year.

Complete the Part B – consequential amendments column where you have selected Yes at item 2. Complete this item for each subsequent year that you have lodged a company tax return and that company tax return is affected by the change to your loss carry back choice for the 2020–21 income year. If you are required to lodge a Loss carry back change in choice schedule 2022, you do not need to complete Part B – consequential amendments column in this schedule.

For each income year, calculate the change in taxable / net income or loss by subtracting the amount of the taxable / net income or loss at item 7 – label T in the original company tax return for that income year from the new amount of the taxable / net income or loss at item 7 – label T in your amendment request for that income year.

At label A, print X in the:

• Increase box if the change in taxable / net income or loss is positive
• Decrease box if the change in taxable / net income or loss is negative
• No change box if there is no change in taxable / net income or loss.

At label B, write the amount of the change in taxable / net income or loss in whole dollars. You do not need to complete this if you select No change at label A.

At label C, write the amount of taxable / net income or loss at item 7 – label T in your amendment request for the relevant income year. You do not need to complete this if you select No change at label A.

At label D, write L if the amount of taxable/net income or loss at item 7 – label T in your amendment request for the relevant income year is a loss. Otherwise, do not complete this label.

Item 8 – Tax losses carried forward to later income years

Complete Part A – choice year column in relation to the 2020–21 income year.

Complete Part B – consequential amendments column where you have shown Yes at item 2. Complete this item for each subsequent year that you have lodged a company tax return and that company tax return is affected by the change to your loss carry back choice for the 2020–21 income year. If you are required to lodge a Loss carry back change in choice schedule 2022, you do not need to complete Part B – consequential amendments column in this schedule.

For each income year, calculate the change in tax losses carried forward to later income years by subtracting the amount of tax losses carried forward at item 13 – label U in the original company tax return from the new amount of tax losses carried forward at item 13 – label U in your amendment request for that income year.

At label A, print X in the:

• Increase box if the change in tax losses carried forward to later income years is positive
• Decrease box if the change in tax losses carried forward to later income years is negative
• No change box if there is no change in tax losses carried forward to later income years.

At label B, write the amount of the change in tax losses carried forward to later income years in whole dollars. You do not need to complete this if you select No change at label A.

At label C, write the amount of tax losses carried forward to later income years at item 13 – label U in your amendment request for the relevant income year. You do not need to complete this if you select No change at label A.

Taxpayer's declaration

If you do not lodge the schedule with your amendment request, you must sign and date page 4 of the schedule.

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