New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002 (117 of 2002)

Schedule 6   Consolidation: losses

Part 2   Utilising losses head company transfers to itself

Income Tax Assessment Act 1997

4   Paragraph 707-335(3)(e)

Repeal the paragraph, substitute:

(e) the principle that, if the transferee transferred the losses to itself under Subdivision 707-A after the start of the income year, the amount of the losses it can utilise for the income year should be worked out as if:

(i) the losses had been included in the bundle from the start of the income year; and

(ii) the available fraction for the bundle had been 1 from the start of the income year until the time of the transfer; and