you need to think outside the box, page-5

good comment Falcon, this comment is related to the 20 billion hole that labor is looking at now

abolishing loss carry-back tax provisions for business,



am I correct to believe that the definition of above and what the outcomes are that IF labor do away with it?.

Below what has been quoted is from 2011,not yesterday,
or today---- but 2011,

the implications can been seen just by the comments or suggestions given by the Law council back in 2011


Part quote
1. What are your priority reform directions for the tax and transfer system? The priorities identified by the Law Council of Australia, Business Law Section, Tax Committee are (in no order of preference):
1.1. Adopt a high tax free threshold and constant marginal rate for most individuals. The low income tax offset could be abolished and there would be a reduced need for the senior Australians tax offset.
1.2. Companies:
(a) should be allowed to carry back revenue losses to offset them against prior years? taxable income. The loss carryback period should be a two year period, with refunds limited to the franking account balance.
(b) should have the real value of losses preserved rather than declining in economic value
(c) and the same business test for loss carryforward should be reviewed and modernised.
For widely held trusts, it is not feasible to have loss carryback rules. However:
(a) the operation of the loss trust rules should be improved and streamlined and
(b) the real value of losses should be preserved rather than declining in economic value.
1.3. Interest withholding tax should be reduced to zero:
(a) in future tax treaties in relation to interest paid to non-resident financial institutions; and
(b) in the domestic law in relation to interest paid:
(i) by resident financial institutions to offshore entities;
(ii) by non-resident financial institutions acting through Australian permanent establishments to offshore entities.

reference from in part from
statement of reform priorities - A tax plan for our future



www.futuretax.gov.au/.../taxforum/.../business/Law_Council_of_Australi...?



Teresa Dyson, Chairman Tax Committee of the Business Law Section ... For widely held trusts, it is not feasible to have loss carryback rules. ... abolished. ... community transfer provisions, with the proposed smoothing of marginal rates. ...... In recent years, taxation legislation is being drafted by reference to what is called “ ...