Australia: Proposed legislation to implement loss carry back and make permanent small business instant asset write-off
Bill introduces loss carry back for corporate tax entities and permanently extends AU$20,000 small business asset write-off.
june 25, 2026
The federal government introduced to Parliament a bill that seeks to implement a loss carry back tax offset for corporate tax entities that are not significant global entities and permanently extend the AU$20,000 instant asset write-off for small businesses.
The Treasury Laws Amendment (Tax Reform No. 2) Bill 2026 would amend the income tax law to:
- Allow corporate tax entities that are not significant global entities to carry back a tax loss for an income year beginning on or after July 1, 2026, and apply it against tax paid in either or both of the two previous income years
- Make permanent the AU$20,000 instant asset write-off for small businesses (with an aggregated annual turnover of less than AU$10 million) to immediately deduct the taxable purpose proportion of eligible depreciating assets costing less than AU$20,000, that are first used or installed ready for use for a taxable purpose on or after July 1, 2026, as well as suspend the low pool value threshold's five-year lockout rule to June 30, 2027
- Provide an income tax exemption for income derived from employment with the PNG Chiefs Limited, being the new Papua New Guinea-based franchise