On 8 May 2012, the Treasurer announced, as part of the Budget, that it will provide tax relief for companies by allowing them to carry-back tax losses so they receive a refund against tax previously paid. This decision aims to boost productivity by helping business invest, innovate and take sensible risks by decreasing the tax bias against riskier projects. It will allow companies (and those entities taxed like companies) to carry back up to $1 million of (revenue) losses each year. Companies will be able to access a one year loss carry-back in 2012-13 (i.e. accessing tax paid in 2011-12), increasing to a two year loss carry-back from 2013-14. This will provide a cash benefit of up to $300,000 a year. A Regulation Impact Statement was prepared by the Treasury and assessed as adequate by the Office of Best Practice Regulation.
