The Gillard Government today commenced public consultation on exposure draft legislation for a new tax loss incentive for major infrastructure projects.
“We are removing tax disincentives to encourage more private sector investment in infrastructure projects,” said Assistant Treasurer David Bradbury.
“The measure will support up to $25 billion in new private sector infrastructure spending, including major transport projects that will help transform our cities and make our international gateways more competitive” he said.
Under the new regime, the Infrastructure Coordinator, a statutory officeholder under the Infrastructure Australia Act, will designate projects as eligible for the tax concession if they meet the relevant criteria.
Projects will need to be included on Infrastructure Australia’s Infrastructure Priority List and assessed as ‘Ready to Proceed’, at least some part of the project must be privately owned or financed and construction of the project must not have commenced.
Minister for Infrastructure and Transport Anthony Albanese said the new rules will ensure that entities carrying on these projects will have the value of their up‑front losses indexed to preserve their value over time, and the losses will continue to be available even if the ownership of the company changes.
“This new tax incentive is part of the Government’s ongoing commitment to promote private investment in nationally significant infrastructure projects. It is an important part of a broader package of reforms to build the infrastructure Australia needs to compete in the 21st century,” said Mr Albanese.
Consultation on the exposure draft legislation will run for two weeks, closing on 30 April 2013. Copies of the draft legislation and accompanying material can be obtained at www.treasury.gov.au.