The government of Australia proposed some incentives through its infrastructure projects to cover the tax loss and promote the private investment. The motto was to develop its infrastructure to remain a competitive economic nation for the twenty-first century. The proposed changes were first announced in the 2011-2012and emphasized the new rules for tax loss incentive projects for those which are of “national significance”.
It is expected that the new rules for tax losses that are attributable to designated infrastructure projects will,
- Uplift the value of carry forward tax losses by the 10 year government bond rate;
- Exempt the tax losses from the continuity of ownership test and the ‘same business’ test.
According to the government the proposed changes will allow investors to claim their tax losses more easily and with greater flexibility. They also think that this will induce investments in this sector more attractive to the private sector, including superannuation funds. The Treasury is calling for comments from interested parties relating to the design and implementation of the proposals by December 9, 2011.
