Document ID: chunk:federal_register_of_legislation:C2011C00610:clause:2_6:p4
Version: federal_register_of_legislation:C2011C00610
Segment Type: clause
Provision Reference: sch 2 cl 6 (pt 4/6)
Character Range: 104498–107431

the same or a later income year. It is applied in the following order:

                (a) to your tax losses from previous income years;
                (b) to your net capital losses from previous income years;
                (c) to the deductions you would otherwise get in the income year, or in a later income year, because of expenditure from a previous year (for example, the capital allowance deductions you would get for expenditure on acquiring a depreciating asset);
                (d) to the cost bases of your CGT assets.

      You can choose the order in which the net forgiven amounts reduce the amounts within each class.
      If all the amounts in the 4 classes are reduced to nil, any remaining net forgiven amounts are disregarded.

Table of sections

General operative provisions

245‑100 Subdivision not to apply to calculation of attributable income
245‑105 How total net forgiven amount is applied

Reduction of tax losses

245‑115 Total net forgiven amount is applied in reduction of tax losses
245‑120 Allocation of total net forgiven amount in respect of tax losses

Reduction of net capital losses

245‑130 Remaining total net forgiven amount is applied in reduction of net capital losses
245‑135 Allocation of remaining total net forgiven amount in respect of net capital losses

Reduction of expenditure

245‑145 Remaining total net forgiven amount is applied in reduction of expenditure
245‑150 Allocation of remaining total net forgiven amount in respect of expenditures
245‑155 How expenditure is reduced—straight line deductions
245‑157 How expenditure is reduced—diminishing balance deductions
245‑160 Amount applied in reduction of expenditure included in assessable income in certain circumstances

Reduction of cost bases of assets

245‑175 Remaining total net forgiven amount is applied in reduction of cost bases of CGT assets
245‑180 Allocation of remaining total net forgiven amount among relevant cost bases of CGT assets
245‑185 Relevant cost bases of investments in associated entities are reduced last
245‑190 Reduction of the relevant cost bases of a CGT asset

Unapplied total net forgiven amount

245‑195 No further consequences if there is any remaining unapplied total net forgiven amount

General operative provisions

245‑100  Subdivision not to apply to calculation of attributable income

  This Subdivision does not apply to the calculation of:
 (a) attributable income of a non‑resident trust estate within the meaning of section 102AAB of the Income Tax Assessment Act 1936; or
 (b) *attributable income of a *CFC.

245‑105  How total net forgiven amount is applied

 (1) Your total net forgiven amount for the *forgiveness income year is the total of the *net forgiven amounts of all your debts that are *forgiven in that year.

Note 1: The total net forgiven amount may be reduced under section 707‑415.

Note 2: The total net forgiven amount of a partner in a