Question: My client wants to bring back $11,482 tax losses from 2020 to offset 2019 $3,175 ($11,482 X tax rate 27.5%) tax paid. Please let me know where to enter the figures in the form to claim back the tax paid in 2019.
Answer: The amount of tax offset cannot exceed your income tax liability for the income year you are carrying the loss back to and closing franking account balance. Should fill both values.
and make sure "Closing account balance" is filled.
Example of calculation for values in the given form -
$11,482 * 0.275 = $3,157.55 This is Loss carry back tax offset. But it cannot be more than tax liability for that year.
Hence it will be 0 until user will enter amount at closing franking account balance. This amount can be entered in Financial information page. This is also described on Losses page near the Loss carry back tax offset field.
Loss carry back tax offset should be: