The Federal Government has announced it will remove tax disincentives in a bid to encourage more private investment in infrastructure projects.

 

Assistant Treasurer, Bill Shorten, and Federal Minister for Infrastructure and Transport Anthony Albanese, released a discussion paper on the 2011/12 budget initiative.

 

The new rules for tax losses that are attributable to designated infrastructure projects will:

  • Uplift the value of carry forward tax losses by the 10 year Government bond rate
  • Exempt the tax losses from the continuity of ownership test and the same business test.

 

The planned tax reform would also allow owners to sell off infrastructure projects with the tax lossess transferred to the new owner.

 

The discussion paper can be found here

 

Closing date for submissions is Friday, 9 December.