Tax Laws Amendment (2013 Measures No. 2) Act 2013 (124 of 2013)

Schedule 2   Incentives for designated infrastructure projects

Part 2   Consequential amendments

Income Tax Assessment Act 1997

29   Subsection 707-120(1)

Repeal the subsection, substitute:

Transfer of loss from joining entity to head company

(1) Subject to subsection (1A), the loss is transferred at the joining time from the joining entity to the *head company of the joined group (even if they are the same entity).

(1A) The loss is transferred under subsection (1) only to the extent (if any) that the loss could have been *utilised by the joining entity for an income year consisting of the *trial year if:

(a) at the joining time, the joining entity had not become a *member of the joined group (but had been a *wholly-owned subsidiary of the *head company if the joining entity is not the head company); and

(b) the amount of the loss that could be utilised for the trial year were not limited by the joining entity’s income or gains for the trial year.