Treasury has released a discussion paper on the proposal to allow businesses to carry-back losses as confirmed in the 2012-13 Budget. The proposal would allow companies to carry back up to $1m worth of losses to get a refund of tax paid in the previous year from 1 July 2012. In addition, the measure also proposes that from 1 July 2013, companies will be able to carry back up to $1m worth of losses against tax paid up to 2 years earlier.
The paper stated that the exposure draft legislation will be released as soon as possible after the consultation on the discussion paper closes, with the final Bill being introduced in the Spring 2012 sittings of Parliament. The Assistant Treasurer said the proposal is estimated to provide assistance to nearly 110,000 companies.
COMMENTS are due by 27 July 2012.
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