Carry back loss provision could preserve businesses and jobs
A carry back loss provision in Australia similar to US provisions would help preserve businesses and jobs, according to Deloitte tax partner Craig Holland.
A statement from Deloitte said should the Government allow a similar provision in Australia, it would throw a lifeline to struggling businesses by providing them with a quick injection of cash.
In the US, small businesses with deductions exceeding their income in 2008 can now use a net operating loss tax provision to get a refund of taxes paid in prior years. The carry back provisions previously applied to two years but have recently been extended to five years, the statement said.
“While the issue of carry backs has been raised before, it needs to be brought to the forefront of discussion again given its importance as an effective way of assisting struggling businesses in the current economic climate,” Holland said.
Recommended for you
AZ NGA has entered into a strategic partnership with national advice firm MiQ Private Wealth, as a way to provide a succession solution, as well as career development opportunities for staff.
While the advice profession struggles under growing operating costs, Adviser Ratings has found more than half of practices – some 58 per cent – that generate less than $250,000 in revenue report no profit at all.
The Federal Court has ordered the freezing of assets and the appointment of receivers to two entities linked to Australian Fiduciaries, ASIC’s latest move in an ongoing investigation into the company’s managed investment schemes.
Off the back of the August adviser exam results, the profession has seen 17 new entrants hit the Financial Adviser Register (FAR) this week, helping numbers return to positive territory.
