Increasing access to company losses

At the time of publishing, these changes had not become law.

On 30 March 2017, legislation was introduced into parliament that will supplement the current ‘same business test’ for company losses with a more flexible 'similar business test'. The new test will enable greater access to past year losses when companies enter into new transactions or business activities. The similar business test will allow a company to access losses following a change in ownership where its business, while not the same, is similar. As a test for accessing past year losses, the 'similar business test' will only be available for losses made in income years starting on or after 1 July 2015. The 'same business test' and the 'similar business test' will be collectively known as 'business continuity test'. This measure is expected to take effect in relation to income years starting on or after 1 July 2015.