A Company which qualifies as a base rate entity will have failed tax rates during the year of operation.
| Income Year | Base rate entity tax rate |
| 2018-19 | 27.5% |
| 2019/20 | 27.5% |
| 2020/21 | 26% |
| 2021/22 | 25% |
For the entire period of the loss carry-back tax offset, a company qualifies as a base rate entity is their aggregated turnover is below $50M.
An opportunity to receive a refundable tax offset at 27.5% or 26% in the loss year will achieve a better economic result than carrying losses forward.