Treasury has released for consultation an exposure draft of The Spreading the Benefits of the Boom Legislation Amendment (Loss Carry-back) Bill 2012 which will amend the law to allow corporate tax entities to carry-back losses to previous income years.

The loss carry-back rules provide a corporate tax entity the choice to carry-back all or part of a tax loss from an income year, or the preceding income year, against unutilised income tax payable in either of the two income years preceding the current year. The measure applies to assessments for the 2012-13 and later income years. A one year transitional carry-back period applies for the 2012-13 income period.