Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p43
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 43/45)
Character Range: 6016364–6018977

the income year under Division 207 and Subdivision 210‑H (except those that are subject to the refundable tax offset rules because of section 67‑25).
 (4) The second condition is that once the amounts of the transferee's income or gains have been worked out under subsection (3) they are not reduced by:
 (a) deductions, or losses, other than losses in the *bundle; or
 (b) taxes or expenses described in subsection 375‑805(4) (which is about *net exempt film income).
Note: One of the effects of subsection (4) is that, for working out how much of a film loss in the bundle can be deducted from the transferee's net exempt film income or net assessable film income:
(a) the transferee's net exempt film income will be the same as its exempt film income worked out under subsection (3); and
(b) the transferee's net assessable film income will be the same as its assessable film income worked out under subsection (3).
 (5) The third condition is that once the amounts of the transferee's *exempt income have been worked out under subsection (3), assume that the transferee had no losses, outgoings or taxes described in subsection 36‑20(1) (which is about *net exempt income), in working out how much of a *tax loss in the *bundle can be deducted from the transferee's net exempt income.

707‑315  What is a bundle of losses?
 (1) A bundle of losses comes into existence at the time (the initial transfer time) a loss of any *sort that has not previously been transferred under Subdivision 707‑A is transferred under that Subdivision from an entity (the real loss‑maker) to the *head company of a *consolidated group (the joined group).
 (2) At the initial transfer time, the bundle consists of every loss (regardless of its *sort) that:
 (a) is transferred at that time under that Subdivision from the real loss‑maker to the *head company of the joined group; and
 (b) has not been transferred under that Subdivision before that time.
Note: For certain purposes, section 707‑327 of the Income Tax (Transitional Provisions) Act 1997 treats the bundle as including certain other losses too.
 (3) The bundle still exists at a later time if it includes at that later time at least one loss of any *sort that could be *utilised or otherwise reduced by an entity for an income year ending after that time (even if one or more losses have ceased to be included in the bundle before that later time).
Note: A bundle continues to exist even if the losses in it are transferred again under Subdivision 707‑A after the initial transfer time.
 (4) A loss ceases to be included in a *bundle at the first time for which it is