News

Loss ‘Carry Back’ Provisions: Progress Update – The Government’s proposed  loss ‘carry back’ measure was introduced into Parliament in February.These provisions seek to allow ‘carry back’ of losses in the current financial year to offset prior year profits, to obtain a refund of tax previously paid.The intention of this measure is to assist corporate businesses facing pressures from the patchwork economy and encourage growth and investment.

There is a real cash benefit of up to $300,000 per year for eligible companies (based on a corporate tax rate of 30 per cent).

Tax Alert 2

Superannuation Contribution Tax Doubled for High-Income Earners

Superannuation contribution tax has increased from 15% to 30% for people earning more than $300,000, effective from July 1,  2012. The tax is applicable on concessional (before tax) superannuation contributions.

The change was pitched by the Government as an equity measure, arguing that the flat 15% tax rate gave high-income earners a tax break not available to low-income earners.