Part 3-90 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

Div 711 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).

S 711-35(1) substituted by No 56 of 2010, s 3 and Sch 5 item 115, applicable on and after 10 February 2010. S 711-35(1) formerly read:

S 711-35(1) amended by No 12 of 2012, s 3 and Sch 6 item 180, by substituting " *corporate tax rate " for " *general company tax rate " , effective 3 June 2010.

711-35(1)
For the purposes of step 2 in the table in subsection 711-20(1), the step 2 amount is worked out using the following formula:

Owned deductions

+             [ Acquired deductions ×             *General company tax rate ]

where:

acquired deductions
means all deductions covered by subsection (2) for expenditure that constituted an acquired deduction of the ^* head company under subsection 705-115(1) when an entity (whether or not the leaving entity) became a ^* subsidiary member of the old group.

owned deductions
means the sum of all deductions covered by subsection (2) that are not acquired deductions.

S 711-35(3) inserted by No 56 of 2010, s 3 and Sch 5 item 116, applicable on and after 1 July 2002.

S 711-35 inserted by No 68 of 2002, s 3 and Sch 1 item 2, effective 24 October 2002 and applicable on and after 1 July 2002 (see sec 700-1 of the Income Tax (Transitional Provisions) Act 1997 ).