The Federal Government has released a discussion paper on the application of the new loss carry-back provisions and is urging SME business owners to submit their feedback on the subject.
As part of loss carry-back, from July 1 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 Gillard Government is spruiking the loss carry-back scheme as a means of providing companies with help to ride out difficult times and invest for the future.
Assistant Treasurer David Bradbury says the discussion paper, titled Improving Access To Company losses – Introducing Loss Carry-Back, 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,” Bradbury explains.
The discussion paper and further information on the measure is available here, and SME business owners are encouraged to review the document and provide comment and feedback as part of the consultation process. The consultation period will close on August 6.
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