Australia introduces tax break for infrastructure investment
Australia’s Assistant Treasurer, David Bradbury, has released a joint statement with Deputy Prime Minister Anthony Albanese regarding a new tax incentive to drive private investment in infrastructure.
Under the incentive, the Infrastructure Coordinator can designate projects eligible for the tax concession with the prerequisite that it has been assessed and labelled “ready-to-proceed” on Infrastructure Australia’s Priority Project List.
“This incentive will encourage private sector investment in nationally significant projects by preserving the value of tax deductible project losses over time and making it easier for investors to access these losses,” said Bradbury.
“The tax incentive will also stimulate innovation in the private sector, for example, by encouraging investments in smart infrastructure that better utilises our existing infrastructure such as the roll-out of managed motorways technology,” he added.
The new incentive has been welcomed, though there are a number of concerns from taxpayers and their advisers.
“This measure was lobbied for to ease the issue of significant losses in early years,” said Richard Snowden, of King & Wood Mallesons. “We welcome the change to the law, though the benefits may only be realised in the long term.”
“There may also be some questions over whether a project qualifies,” added Snowden.