Joint Media Release
Leader of the House
Minister for Infrastructure and Transport
Encouraging more investment in infrastructure
The Gillard Government is removing tax disincentives to encourage more private investment in infrastructure projects, the Assistant Treasurer, Bill Shorten and Minister for Infrastructure and Transport, Anthony Albanese, announced today.
In releasing the discussion paper on the 2011-12 Budget measure to introduce new rules for tax losses that are attributable to designated infrastructure projects, Mr Shorten said "The proposed changes will allow investors to more easily and with greater flexibility claim losses, making this type of investment more attractive to the private sector, including superannuation funds."
The new rules for tax losses that are attributable to designated infrastructure projects will:
- Uplift the value of carry forward tax losses by the 10 year Government bond rate
- Exempt the tax losses from the continuity of ownership test and the same business test.
Mr Albanese said "This new tax incentive is part of the Government's ongoing commitment to promote private investment in infrastructure projects designated to be of national significance. It is also part of a broader package of reforms to build the infrastructure Australia needs to compete in the 21st century."
The purpose of the discussion paper is to provide interested parties with an opportunity to comment on the design and implementation details of the proposal.
Consultation on the discussion paper will run for six weeks, closing on 9 December 2011. Copies of the Discussion Paper can be obtained on the Treasury website.
26 October 2011