Proposed loss carry-back scheme for corporate taxpayers

Articles Written by Andy Milidoni (Partner)

On 23 August 2012, the Commonwealth Treasury released, for consultation, an exposure package consisting of draft legislation and accompanying draft explanatory memorandum in respect of the Commonwealth Government's proposed loss carry back scheme for corporate taxpayers. This follows the Treasury's release of a discussion paper about the measure in July 2012.

The loss carry-back measures will allow a company in a temporary loss position to carry-back up to $1 million of revenue losses over the previous 2 income years (in which income tax was paid). A tax offset of up to $300,000 is available to eligible corporate taxpayers.

The scheme commences for the 2012-13 income year and therefore companies should be aware of the scheme in the current year or substituted accounting period.

Important Disclaimer: The material contained in this article is comment of a general nature only and is not and nor is it intended to be advice on any specific professional matter. In that the effectiveness or accuracy of any professional advice depends upon the particular circumstances of each case, neither the firm nor any individual author accepts any responsibility whatsoever for any acts or omissions resulting from reliance upon the content of any articles. Before acting on the basis of any material contained in this publication, we recommend that you consult your professional adviser. Liability limited by a scheme approved under Professional Standards Legislation (Australia-wide except in Tasmania).

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