ARTICLE · 28 OCTOBER 2011

Tax Loss Reform for Taxpayers Undertaking Infrastructure Projects

Moore Australia

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Proposed tax reforms aim to encourage more private investment in infrastructure projects.

AustraliaTax

Stephen O'Flynn

Nick Zanikos

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Tax Loss Reform for Taxpayers Undertaking Infrastructure Projects

Yesterday the Federal Government released a discussion paper regarding tax reform that will encourage more private investment in infrastructure projects. The proposed reforms provide significant concessional treatment for tax losses incurred by companies and trusts in respect of designated infrastructure projects that are considered to be of national importance.

Currently, tax losses that are typically incurred at the start of an infrastructure project may not be able to be claimed against taxable income derived by the same entity in future income years because those losses fail the loss recoupment rules.

The proposed new rules will:

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