These new rules allow a company with current year losses, up to $1 million, to claim those against the prior year, assuming tax was paid in respect of that year.

The claim back can go back to 1 July 2012 for the 2013 tax year and 1 July 2012 for the 30th June 2014 tax year.

The maximum refund is the lesser of $300,000 (i.e. $1 million x 30% tax rate) or the current balance of the franking account.  In other words if the tax credits have already been passed on and the benefits obtained by the shareholders, then a second benefit cannot be claimed by the company.

A trust with current losses would not be eligible; the benefit will only apply to a company.