Commonwealth Consolidated Acts Commonwealth Consolidated ActsPart 1 -- Concepts and definitions
Income Tax Assessment Act 1936
1 Subsection 45B(8)
After "of a scheme include", insert "the following".
2 Paragraph 45B(8)(c)
Omit "carried forward to a later", substitute "unutilised (within the meaning of the Income Tax Assessment Act 1997 ) at the end of the relevant".
Income Tax Assessment Act 1997
3 Subsection 4 - 15(1) (note)
Omit "deduct in", substitute "utilise in that or".
4 Subsection 26 - 47(8)
Omit "so much of your * net exempt income as is not applied for that income year under section 35 - 15 (about non - commercial business activities) or section 36 - 10 or 36 - 15 (about tax losses)", substitute "your * net exempt income for that year (after * utilising the net exempt income under section 35 - 15 (about non - commercial business activities) or section 36 - 10 or 36 - 15 (about tax losses))".
5 Subsection 35 - 15(2)
Omit "so much of your * net exempt income as is not applied for that income year under section 36 - 10 or 36 - 15 (about tax losses)", substitute "your * net exempt income for that year (after * utilising the net exempt income under section 36 - 10 or 36 - 15 (about tax losses))".
6 Section 36 - 1
Omit "which you may be able to deduct in a later income year".
7 At the end of section 36 - 1
Add:
Note: You may be able to utilise the tax loss in that or a later income year.
8 Subsection 36 - 15(1) (note)
After "Note", insert "1".
9 At the end of subsection 36 - 15(1)
Add:
Note 2: A tax loss can be deducted only to the extent that it has not already been utilised: see subsection 960 - 20(1).
10 Subsections 36 - 15(6) and (7)
Repeal the subsections ( including the note).
11 At the end of subsection 36 - 17(1)
Add:
Note 1: A tax loss can be deducted under this section only to the extent that it has not already been utilised: see subsection 960 - 20(1).
Note 2: A corporate tax entity may also be able to carry a loss back to an earlier income year: see Division 160.
12 Subsections 36 - 17(8) and (9)
Repeal the subsections ( including the note).
13 Paragraph 36 - 17(10)(a)
Omit "deduct", substitute " * utilise".
14 Paragraph 36 - 45(1)(b)
Omit "deducted", substitute " * utilised".
15 Section 65 - 10
Omit "using certain losses that are carried forward", substitute "utilising certain losses of earlier income years".
16 Subsection 102 - 10(2) (note)
Repeal the note.
17 Section 102 - 15
Repeal the section, substitute:
102 - 15 How to apply net capital losses
In working out if you have a * net capital gain, your * net capital losses are applied in the order in which you made them.
Note 1: A net capital loss can be applied only to the extent that it has not already been utilised: see subsection 960 - 20(1).
Note 2: For applying a net capital loss for the 1997 - 98 income year or an earlier income year, see section 102 - 15 of the Income Tax (Transitional Provisions) Act 1997 .
18 Section 165 - 114 (note 1)
Repeal the note.
19 Section 165 - 114 (note 2)
Omit "Note 2", substitute "Note".
20 Paragraph 165 - 115R(3)(a)
Omit "an undeducted * tax loss or undeducted", substitute "a * tax loss or".
21 Paragraph 165 - 115R(3)(b)
Omit "an unapplied * net capital loss or unapplied", substitute "a * net capital loss or".
22 Paragraph 165 - 115R(4)(a)
Omit "an undeducted * tax loss or unapplied", substitute "a * tax loss or".
23 Subsection 170 - 20(2)
Omit "deduct", substitute " * utilise".
24 Subsection 170 - 45(1)
Repeal the subsection, substitute:
Loss company can only transfer what it cannot use itself
(1) The amount transferred cannot exceed what would be the amount of the * loss company's * unutilised * tax loss at the end of the * deduction year if the loss company utilised the tax loss to the greatest extent possible.
25 Subsection 170 - 115(2)
Omit "apply", substitute " * utilise".
26 Subsection 170 - 145(1)
Omit "the amount of the loss company's * net capital loss that, apart from the transfer, the loss company would carry forward to the next income year after the application year", substitute "what would be the amount of the * loss company's * unutilised * net capital loss at the end of the application year if the loss company utilised the net capital loss to the greatest extent possible".
27 Subsection 170 - 145(1) (note)
Omit "loss company would carry forward the whole of the net capital loss", substitute " whole of the net capital loss would be unutilised".
28 Subdivision 707 - A (heading)
Repeal the heading, substitute:
Subdivision 707 - A -- Transfer of losses to head company
29 Section 707 - 100
Omit "but not utilised".
30 Subsection 707 - 110(1)
Omit "(1)".
31 Subsection 707 - 110(2)
Repeal the subsection.
32 Subsection 707 - 115(1)
Omit "(1)".
33 Subsection 707 - 115(2)
Repeal the subsection.
34 Before Subdivision 960 - C
Insert:
Subdivision 960 - B -- Utilisation of tax attributes
Table of sections
960 - 20 Utilisation
(1) None of the following can be * utilised, to the extent it has already been utilised:
(a) a * tax loss;
(b) a * net capital loss;
(c) * net exempt income.
Utilisation of losses
(2) A * tax loss is utilised to the extent that:
(a) it is deducted from an amount of assessable income or * net exempt income; or
(b) it is reduced by applying a * total net forgiven amount; or
(c) it is * carried back.
(3) A * net capital loss is utilised to the extent that:
(a) it is applied to reduce an amount of * capital gains; or
(b) it is reduced by applying a * total net forgiven amount.
Utilisation of net exempt income
(4) * Net exempt income for an income year is utilised to the extent that:
(a) it is subtracted:
(i) from deductions; or
(ii) under subsection 268 - 60(4) in Schedule 2F to the Income Tax Assessment Act 1936 or subsection 165 - 70(4) or 175 - 35(4) of this Act;
in determining a * tax loss for the income year; or
(b) because of it, the extent to which a tax loss can be deducted in that income year is reduced; or
(c) because of it, an amount is reduced under subsection 35 - 15(2) (about deferral of deductions from non - commercial business activities); or
(d) because of it, a quarantined amount is reduced under subsection 26 - 47(8); or
(e) it is reduced under subsection 65 - 35(3) because of a * tax offset carried forward; or
(f) because of it, an amount is reduced under step 2 of the method statement in subsection 160 - 15(2) (which is a step in calculating a loss carry back tax offset component).
35 Subsection 995 - 1(1)
Insert:
"carry back" : you carry back to an income year so much of a * tax loss for a later income year as you specify in a * loss carry back choice to be carried back to the earlier income year.
36 Subsection 995 - 1(1) (definition of current year )
Repeal the definition, substitute:
"current year" means the income year for which you are working out your assessable income, deductions and * tax offsets.
37 Subsection 995 - 1(1)
Insert:
"loss carry back choice" has the meaning given by section 160 - 2 0 .
38 Subsection 995 - 1(1)
Insert:
"loss carry back tax offset" has the meaning given by section 160 - 10.
39 Subsection 995 - 1(1)
Insert:
"loss carry back tax offset component" has the meaning given by subsection 160 - 15(2).
40 Subsection 995 - 1(1)
Insert:
"unutilised" means not * utilised.
41 Subsection 995 - 1(1) (definition of utilise )
Repeal the definition, substitute:
"utilise" , a * tax loss, a * net capital loss or * net exempt income, has the meaning given by section 960 - 20.
Income Tax (Transitional Provisions) Act 1997
42 Subdivision 707 - A (heading)
Repeal the heading, substitute:
Subdivision 707 - A -- Transfer of losses to head company
43 Subsection 770 - 30(2) (note)
Omit "undeducted tax loss may be deducted", substitute "tax loss may be utilised".
Taxation Administration Act 1953
44 Paragraph 45 - 330(1)(c) in Schedule 1
Omit "you can carry it forward to the next income year", substitute "it is * unutilised at the end of the base year".
45 Subparagraph 45 - 330(2A)(c)(i) in Schedule 1
Omit "you can carry it forward to the next income year", substitute "it is * unutilised at the end of the base year".
46 Subsection 45 - 330(3) in Schedule 1 ( paragraph ( a) of step 3 of the method statement)
Omit "the company can carry them forward to the next income year", substitute "they are * unutilised at the end of the * base year".
47 Subsection 45 - 330(3) in Schedule 1 ( paragraph ( a) of step 6 of the method statement)
Omit "the company can carry them forward to the next income year", substitute "they are * unutilised at the end of the * base year".
48 Subsection 45 - 480(2) in Schedule 1 ( paragraph ( c) of the definition of adjusted net income of the trust )
Omit "can be carried forward for working out the trust's net income for the next income year", substitute "is * unutilised at the end of the * base year".
Income Tax Assessment Act 1936
49 Subsection 92A(3)
After "Division 36", insert "or 160".
Income Tax Assessment Act 1997
50 Section 13 - 1 (after table item headed "long service leave")
Insert:
losses |
|
loss carry back ............................ | Division 160 |
51 Section 36 - 25 (at the end of the table item dealing with tax losses of corporate tax entities)
Add:
| See also Division 160 (loss carry back tax offset) |
|
52 Section 36 - 25 (table dealing with tax losses of pooled development funds (PDFs), item 1)
Repeal the item, substitute:
1. | A company is a pooled development fund (PDF) at the end of an income year for which it has a tax loss: it can only: (a) deduct the loss while it is a PDF; or (b) carry back the loss to an income year in which it was a PDF. | Sections 195 - 5 and 195 - 37 |
53 Section 36 - 25 (table dealing with tax losses of pooled development funds (PDFs), item 2)
Omit "deducted in a later income year", substitute "utilised".
54 Section 36 - 25 (table dealing with tax losses of VCLPs, ESVCLPs, AFOFs and VCMPs, item 1)
Repeal the item, substitute:
1. | A limited partnership that has a tax loss becomes a VCLP, an ESVCLP, an AFOF or a VCMP: it cannot: (a) deduct the loss while it is a VCLP, an ESVCLP, an AFOF or a VCMP; or (b) carry back the loss to an income year in which it was not a VCLP, an ESVCLP, an AFOF or a VCMP. | Subdivision 195 - B |
55 At the end of paragraph 195 - 15(5)(b)
Add "and".
56 After paragraph 195 - 15(5)(b)
Insert:
(c) section 195 - 37 does not prevent the company from * carrying back its tax loss for the purpose of working out the amount of the company's * loss carry back tax offset for an income year;
57 At the end of Subdivision 195 - A
Add:
Working out a PDF's loss carry back tax offs e t
195 - 37 PDF cannot carry back tax loss
A company that:
(a) has a * tax loss for an income year; and
(b) is a * PDF at the end of the income year;
cannot * carry back the loss to an earlier income year for the purposes of working out the amount of the company's * loss carry back tax offset for an income year (the offset year ) unless the company is a PDF throughout the earlier income year and the offset year.
58 After section 195 - 70
Insert:
A * limited partnership's * tax loss for a * loss year cannot be * carried back to an income year during which the partnership was a * VCLP, an * ESVCLP, an * AFOF or a * VCMP.
59 Subsection 205 - 30(1) (after table item 2)
Insert:
2A | the entity * receives a * tax offset refund; and the entity does not satisfy the * residency requirement for the income year to which the refund relates; and the entity was a * franking entity during the whole or part of the income year to which the refund relates; and the entity's * franking account is in * surplus on the day on which the refund is received | the lesser of: (a) that part of the refund that is attributable to the period during which the entity was a franking entity; and (b) the amount of the * franking surplus | on the day on which the refund is received |
60 Subparagraph 205 - 35(1)(b)(ii)
After "applying", insert "a * loss carry back tax offset, or".
61 Subparagraph 205 - 35(1)(b)(ii)
After "(about R&D)", insert ",".
62 Subsection 219 - 30(1)
Omit "item 2", substitute "items 2 and 3".
63 Subsection 219 - 30(2) (at the end of the table)
Add:
3 | the company * receives a * tax offset refund; and the company does not satisfy the * residency requirement for the income year to which the refund relates; and the company was a * franking entity for the whole or part of that income year; and the company's * franking account is in * surplus on the day on which the refund is received | the lesser of: (a) that part of the refund that is attributable to: (i) the * shareholders' share of the income tax liability of the company for that income year; and (ii) the period during which the company was a franking entity; and (b) the amount of the * franking surplus | on the day on which the refund is received |
64 After paragraph 320 - 149(2)(a)
Insert:
(aa) Division 160 (Corporate loss carry back tax offset);
65 At the end of subsection 830 - 65(3)
Add "or 160".
Taxation Administration Act 1953
66 Section 45 - 340 in Schedule 1 (after paragraph ( db) of step 1 of the method statement)
Insert:
(dc) Division 160 of the Income Tax Assessment Act 1997 (the loss carry back tax offset);