Proposed changes to enhance loss utilisation for investors in particular infrastructure projects – update

Key Points:

More details of how the Government's proposed tax incentive for private investment in infrastructure projects would work have been released.

The Commonwealth Government, as part of its 2011-12 Budget, announced its intention to "introduce a new tax incentive designed to remove impediments in the tax system that discourage private investment in infrastructure projects." In short, the incentive aims to increase the benefit of tax losses arising in connection with "designated infrastructure projects" (project losses). The Budget announcement outlined three main elements of the proposed incentive, namely:

• the incentive will apply to projects given "designated infrastructure project" status and listed on Infrastructure Australia' s national priority list;