Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p2
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 2/95)
Character Range: 5551690–5554675

Division 415

415‑1  What this Division is about
      This Division provides for special treatment for tax losses and bad debts for certain entities (called "designated infrastructure project entities") that carry on infrastructure projects that the Infrastructure CEO designates under Subdivision 415‑C.

Subdivision 415‑A—Object of this Division

Table of sections
415‑5 Object of this Division

415‑5  Object of this Division
  The object of this Division is to reduce the disincentives for private expenditure on nationally significant infrastructure that result from the long lead times between incurring deductions for, and earning assessable income from, such expenditure.

Subdivision 415‑B—Tax losses and bad debts

Guide to Subdivision 415‑B

415‑10  What this Subdivision is about
      The unutilised amounts of a designated infrastructure project entity's tax losses are increased each year by the long term bond rate. A designated infrastructure project entity is a fixed trust or company that:

                (a) carries on an infrastructure project designated under Subdivision 415‑C; and
                (b) only engages, and has only ever engaged, in activities for the purposes of carrying on that designated infrastructure project.

      The tests that apply in relation to tax losses and bad debts if there is a change of ownership of an entity are modified so that periods during which the entity is a designated infrastructure project entity are not tested.
      The loss utilisation rules in Subdivision 707‑C do not apply if the head company of a consolidated group is a designated infrastructure project entity after another designated infrastructure project entity joins the group.
                  Note: The transfer rules in subsection 707‑120(1A) do not apply if a designated infrastructure project entity joins a consolidated group: see subsection 707‑120(5).

Table of sections

Uplift of tax losses
415‑15 Uplift of tax losses of designated infrastructure project entities
415‑20 Designated infrastructure project entity

Change of ownership of trusts and companies
415‑25 Tax losses of trusts
415‑30 Bad debts written off etc. by trusts
415‑35 Tax losses of companies
415‑40 Bad debts written off by companies

Consolidated groups
415‑45 Losses transferred to head companies of consolidated groups

Uplift of tax losses

415‑15  Uplift of tax losses of designated infrastructure project entities
 (1) The amount of a *tax loss of a *loss year of an entity is increased, at the end of each later income year (and before any *utilisation of the tax loss by the entity in the later income year), by the amount worked out using the following formula:

where:
eligible portion of the later income year means the amount worked out using the following formula:
 (2) This subsection applies to the entity on a day in the later income year if:
 (a) the entity is a *designated infrastructure project entity on that day; and
 (b) on the day mentioned in