Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:2_15
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 2 cl 15
Character Range: 117474–118391

15  After subsection 116CD(6)
Insert:

 (7) The life assurance company must choose the extent to which:
 (a) the total modified capital loss (if any); and
 (b) the losses (if any) that, under subsections (3) to (6), are to be applied in reduction of the CS/RA class;
are respectively applied:
 (c) in respect of non‑exempt modified capital gains; and
 (d) in respect of non‑exempt modified discount capital gains.

 (7A) The non‑exempt modified capital gains and the non‑exempt modified discount capital gains are reduced by the amounts respectively applied in respect of them in accordance with the choices made under subsection (7).

 (7B) After making the reductions referred to in subsection (7A), the assessable income of the CS/RA class includes:
 (a) the amount left over of the non‑exempt modified capital gains; and
 (b) two‑thirds of the amount left over of the non‑exempt modified discount capital gains.