Tax and Superannuation Laws Amendment (2013 Measures No. 1) Act 2013 (88 of 2013)

Schedule 6   Loss carry back consequential amendments

Part 1   Concepts and definitions

Income Tax Assessment Act 1997

34   Before Subdivision 960-C

Insert:

Subdivision 960-B - Utilisation of tax attributes

Table of sections

960-20 Utilisation

(1) None of the following can be *utilised, to the extent it has already been utilised:

(a) a *tax loss;

(b) a *net capital loss;

(c) *net exempt income.

Utilisation of losses

(2) A *tax loss is utilised to the extent that:

(a) it is deducted from an amount of assessable income or *net exempt income; or

(b) it is reduced by applying a *total net forgiven amount; or

(c) it is *carried back.

(3) A *net capital loss is utilised to the extent that:

(a) it is applied to reduce an amount of *capital gains; or

(b) it is reduced by applying a *total net forgiven amount.

Utilisation of net exempt income

(4) *Net exempt income for an income year is utilised to the extent that:

(a) it is subtracted:

(i) from deductions; or

(ii) under subsection 268-60(4) in Schedule 2F to the Income Tax Assessment Act 1936 or subsection 165-70(4) or 175-35(4) of this Act;

in determining a *tax loss for the income year; or

(b) because of it, the extent to which a tax loss can be deducted in that income year is reduced; or

(c) because of it, an amount is reduced under subsection 35-15(2) (about deferral of deductions from non-commercial business activities); or

(d) because of it, a quarantined amount is reduced under subsection 26-47(8); or

(e) it is reduced under subsection 65-35(3) because of a *tax offset carried forward; or

(f) because of it, an amount is reduced under step 2 of the method statement in subsection 160-15(2) (which is a step in calculating a loss carry back tax offset component).