Release of Discussion Paper for "Improving Access to Company Losses - Loss Carry Back"
A discussion paper on the application of new loss carry-back provisions has been released today, said Assistant Treasurer David Bradbury.
Improving access to company losses is a discussion paper that provides details on how loss carry-back will be applied.
"Companies not in the fast lane of our economy can invest in their people, equipment and ideas, knowing that they'll be able to carry back losses at tax time,” said Mr Bradbury.
"In its first four years, this major tax reform is estimated to provide much-needed assistance to nearly 110,000 companies struggling with the challenges of an economy in transition, helping them ride out difficult times and invest for the future.
As part of loss carry-back, from 1 July 2012, companies will be able to carry back up to $1 million worth of losses to get a refund of tax paid in the previous year. From 1 July 2013, companies will be able to carry back up to $1 million worth of losses against tax paid up to two years earlier.
The introduction of the loss carry-back tax reform implements another recommendation of Australia's Future Tax System review and continues the Government’s commitment to tax reform.
Loss carry-back received strong and widespread support at the Government's successful Tax Forum last year and was developed further in close consultation with business representatives and tax experts through the Business Tax Working Group, which recommended the measure in its Final Report on the Tax Treatment of Losses.
The Government encourages comment and feedback on the discussion paper as part of the consultation process.
The discussion paper and further information on the measure can be obtained from the Treasury website.
Consultation on the discussion paper will close on 6 August 2012.
18 July 2012