Government moves to introduce loss carry-back into tax system
The Federal Government has called on stakeholders to contribute to planned legislation that will see the introduction of loss carry-back into the business tax system.
The exposure draft legislation and explanatory materials have been prepared following consultation on the discussion paper , Improving access to company losses, which closed on 6 August 2012.
"Allowing carry-back will encourage businesses to invest and adapt, and will mean companies in the slow lane can use their tax losses now - when they need to - rather than in the future when their businesses are performing better," Assistant Treasurer David Bradbury said.
"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.
"In its first 4 years, it is estimated that this major tax reform will provide much-needed assistance to nearly 110,000 companies adapting to the challenges of an economy in transition, helping them ride out difficult times and invest for the future, helping to boost their productivity."
The exposure draft legislation and explanatory material on the measure can be obtained fromwww.treasury.gov.au. Consultation will close on 19 September 2012.