Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p51
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 51/66)
Character Range: 6455435–6458037

the prior group losses are to be treated as if they had not been transferred under Subdivision 707‑A, to the extent to which the ongoing head company can *utilise them for the income year because they are treated as being included in a *bundle whose available fraction was 1 from the start of the income year until the time of the application event.
 (3) This section is a matter that is relevant for the purposes of paragraph 707‑335(3)(f), if section 707‑335 applies to the ongoing head company's *utilisation of the losses in the *bundle for the income year.
Note: That section applies to a company's utilisation for an income year of losses in a bundle if the losses are transferred under Subdivision 707‑A after the start of the year or if the value of the available fraction for the bundle changes during the year while the company is treated as having made the losses because of that Subdivision.
 (4) Section 719‑305 has effect subject to this section.

719‑325  Cancellation of all losses in a bundle
 (1) The ongoing head company:
 (a) may choose to cancel all the losses in the *bundle of prior group losses; and
 (b) may choose to cancel all the losses in a *bundle of losses to which section 719‑310 applies.
 (2) If the ongoing head company chooses to cancel all the losses in a *bundle, subsections (3), (4), (5), (6) and (7) operate.
 (3) The ongoing head company cannot *utilise for the income year in which the application event happened more of the losses than it would have been able to utilise under Subdivision 707‑C assuming:
 (a) if the losses are prior group losses:
 (i) the losses were in a *bundle for the income year; and
 (ii) the *available fraction for the bundle were 1 for the period from the start of the income year until the event happened; and
 (b) in any case—the available fraction for the bundle including the losses were 0 from the time of the event until the end of the income year.
Note: Section 707‑335 is relevant to working out how much of the losses could be utilised, because the value of the available fraction for the bundle changes during the period described in that section.
 (4) The ongoing head company cannot:
 (a) transfer the losses to another company under Division 170 for an income year ending after the application event; or
 (b) transfer the losses to another company under Subdivision 707‑A after the application event.
This subsection has effect despite subsection (3).
 (5) Disregard the existence of the *bundle at and after the time of the application event for the purposes of working out the *available fraction for another *bundle