The Gillard Government will attempt to encourage more private investment in infrastructure projects by removing associated tax disincentives
October 28, 2011
The Gillard Government will attempt to encourage more private investment in infrastructure projects by removing associated tax disincentives.
Assistant Treasurer Bill Shorten says the proposed changes, announced in a 2011-12 Budget discussion paper this week will allow investors to more easily and with greater flexibility claim infrastructure investment losses.
“It will make this type of investment more attractive to the private sector, including superannuation funds,” Shorten claims.
The new rules for tax losses attributable to designated infrastructure projects will uplift the value of carry forward tax losses by the 10 year Government bond rate and exempt the tax losses from the continuity of ownership test and the same business test.
Transport and Infrastructure Minister Anthony Albanese says the new tax incentive is part of the Government’s ongoing commitment to promote private investment in infrastructure projects of national significance.
“It is also part of a broader package of reforms to build the infrastructure Australia needs to compete in the 21st century,” he says.
Interested parties can comment on the design and implementation details of the proposal in the discussion paper within a six week consultation period closing on 9 December 2011.