In media release No 2012/091, issued 23 August 2012, the Assistant Treasurer and Minister Assisting for Deregulation, David Bradbury, announced the release of exposure draft legislation and explanatory material to introduce company loss carry-back into the business tax system.
"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," Mr Bradbury said.
The exposure draft legislation includes a minor amendment to the definition of 'tax benefit' in the general anti-avoidance rule in Part IVA ITAA 1936 so it can apply to loss carry-back in the same way as it can for all other deductions. It also includes integrity rules that mirror the rules used for the carrying forward of losses to set out how the rules are proposed to work for loss carry-back.
The closing date for submissions is Wednesday, 19 September 2012.