Turnbull Unveils Tax Carryback Scheme For Small Businesses

by Mary Swire, Tax-News.com, Hong Kong

07 April 2009

Australian Opposition leader, Malcolm Turnbull, has unveiled plans to try to stimulate the country's business sector.

Speaking at a small function in Hobart at the beginning of the month, Mr Turnbull said:

"To bolster the cash position of firms with a solid operating history but facing operating losses in 2009 and/or 2010, limited carryback of tax losses should be introduced, capped at AUD100,000 (USD71,342) of refunded tax per firm over the two years. This would allow firms to offset their operating losses by reclaiming taxes paid over the past three years, up to this limit."

"The measure would only apply for businesses with at least one employee in each year a refund claim is made, and in each year that tax was previously paid. Carryback would be governed by the same rules that currently apply when companies carry forward losses to reduce future tax liabilities," he added.

"We believe that the spirit of private enterprise will drive us forward. This is why the Liberal plan for recovery will focus on small business – because small business is the engine room of the economy and will play a crucial role in our recovery," Mr Turnbull concluded.

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