Tax Laws Amendment (2004 Measures No. 2) Act 2004 (83 of 2004)

Schedule 1   Life insurance companies

Part 6   Amendments commencing on 17 December 2003

Taxation Administration Act 1953

107   Subsection 45-330(3) in Schedule 1 (method statement)

Repeal the method statement, substitute:

Method statement

Step 1. Recalculate the taxable income of the *ordinary class for the *base assessment on the basis that it did not include any *net capital gain.

Step 2. Add to the step 1 result the deductions for *tax losses of the *ordinary class that were used in making the *base assessment.

Step 3. Reduce the step 2 result by the lesser of the following amounts:

(a) the amount of any *tax losses of the *ordinary class, to the extent that the company can carry them forward to the next income year;

(b) deductions for tax losses of the ordinary class that were used in making the *base assessment.

Step 4. Add to the step 3 result the taxable income of the *complying superannuation class for the *base assessment.

Step 5. Add to the step 4 result the deductions for *tax losses of the *complying superannuation class that were used in making the *base assessment.

Step 6. Reduce the step 5 result by the lesser of the following amounts:

(a) the amount of any *tax losses of the *complying superannuation class, to the extent that the company can carry them forward to the next income year;

(b) deductions for tax losses of the complying superannuation class that were used in making the *base assessment.

The result of this step is the adjusted taxable income of the company for the *base year.