First Home Saver Accounts (Consequential Amendments) Act 2008 (45 of 2008)

Schedule 1   Main taxation related amendments

Income Tax Assessment Act 1997

26   Subsections 295-555(3) and (4)

Repeal the subsections, substitute:

(3) However, if the sum of the *RSA component and the *FHSA component (if any) is more than the *RSA provider’s taxable income:

(a) the provider’s taxable income is equal to that sum; and

(b) this Act applies to the provider as if it had a *tax loss for the income year of an amount that would have been that loss if the RSA component and the FHSA component (if any) were not *ordinary income or *statutory income.

(4) The standard component is the remaining part (if any) of the *RSA provider’s taxable income for the income year after subtracting the *RSA component and the *FHSA component (if any).