LAQC / Look-Through Company

A Look-Through Company (LTC) is a special company structure where income, expenses, tax credits, and losses flow through to shareholders in proportion to their ownership interest, rather than being taxed at the company level. LTCs were introduced in 2011 to replace the older Loss Attributing Qualifying Company (LAQC) structure.

The main advantage of an LTC is that shareholders can offset company losses against their personal income — particularly useful for rental property investors who may have tax losses in early years. However, shareholders are personally liable for tax on their share of company income, and there are strict rules around loss limitation.

LTC status must be elected by all shareholders and the company must meet certain criteria (e.g. a maximum of 5 look-through counted owners). The rules are complex, especially around loss limitation, owner changes, and entry/exit — professional tax advice is strongly recommended before setting up or restructuring an LTC.