Financial Framework Legislation Amendment Act (No. 2) 2013 (53 of 2013)

Schedule 3   Loss relief relating to the transfer of assets from the MSB Fund to the ARIA Investments Trust

1   Loss relief relating to the transfer of assets from the MSB Fund to the ARIA Investments Trust

Object

(1) The object of this item is to provide for loss relief relating to the transfer of assets from the MSB Fund to the ARIA Investments Trust.

Transfer of net capital loss

(2) Each of the following is transferred from the MSB Fund to the ARIA Investments Trust:

(a) any of the MSB Fund's net capital losses for income years earlier than the 2011-12 income year, to the extent that the loss was not utilised before the end of 11 May 2012 (an earlier year net capital loss );

(b) a net capital loss the MSB Fund would have made for the 2011-12 income year if it were assumed that the income year had ended at the end of 11 May 2012 (a transfer year net capital loss ).

Effect of transferring a net capital loss

(3) To the extent that an earlier year net capital loss is transferred to the ARIA Investments Trust:

(a) the MSB Fund is taken not to have made the loss for that earlier income year; and

(b) an amount equal to the transferred amount is taken to be a capital loss made by the ARIA Investments Trust for the 2011-12 income year.

(4) To the extent that a transfer year net capital loss is transferred to the ARIA Investments Trust:

(a) the sum of the MSB Fund's capital losses for the transfer year is reduced by an amount equal to the transferred amount; and

(b) an amount equal to the transferred amount is taken to be a capital loss made by the ARIA Investments Trust for the 2011-12 income year.

Interpretation

(5) An expression used in this item and in the Income Tax Assessment Act 1997 has the same meaning in this item as it has in that Act.

Definition

(6) In this item:

MSB Fund has the same meaning as Fund has in the Military Superannuation and Benefits Act 1991.