Document ID: chunk:federal_register_of_legislation:C2010C00615:clause:1_6
Version: federal_register_of_legislation:C2010C00615
Segment Type: clause
Provision Reference: sch 1 cl 6
Character Range: 7624–8751

6  Section 165‑115
Repeal the section, substitute:

165‑115  What this Subdivision is about

      If a change occurs in the ownership or control of a company that has an unrealised net loss, the company cannot, to the extent of the unrealised net loss, have capital losses taken into account, or deduct revenue losses, in respect of CGT events that happen to CGT assets that it owned at the time of the change, unless it satisfies the same business test.
      However, special rules, directed at saving compliance costs, apply to exempt any company that has a net asset value of under $5,000,000 at the time of the change. Further, the company may choose to exclude every asset that it acquired for less than $10,000 from the application of this Subdivision in respect of the change and, if it does so:

                (a) unrealised losses and gains on assets so excluded will not be taken into account in calculating the company's unrealised loss at that time; and
                (b) losses on assets so excluded that are held at that time will be allowed without the company being subject to the same business test.