Andrew Smailes


The asymmetric treatment of corporate losses arguably creates impediments to risk taking, investment and innovation, which ultimately detracts from productivity growth. To deal with this situation, the Tax and Superannuation Laws Amendment (2013 Measures No. 1) Bill 2013 received royal assent on 28 June 2013 and implemented a loss carry-back system based on prior recommendations of the Business Tax Working Group however this system has since been repealed. The Business Tax Working Group originally proposed four reform options by. With the loss carry-back now implemented and subsequently repealed, it is an appropriate time to cast an eye over these other options, whilst also considering the positives and negatives of the loss carry-back option. Such option was not intended to be the end of the matter but the first step to a reform of the use of corporate tax losses.