Treasurer flags ‘carry-back losses regime’

In a recent speech, the Treasurer, the Hon. Wayne Swan MP spoke on the possibility of introducing a carry-back losses regime .

In Germany, Ireland and the UK losses can be carried back to the previous year. The Canada and France have allowed three year carry back in recent years.

Mr Swan said

It may make sense for Australia to have a carry back period within this range. Perhaps with a cap, like many of these countries, to protect the integrity of the tax system.

The business tax working group will deliver its report on the tax treatment of losses in the next two weeks.