Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 9/30)
Character Range: 6167037–6169863

income year in which the joining time occurs merely because this Act operates as if the head company had made the loss for that year.
 (4) Division 707 does not apply in relation to the *net capital loss or the *tax loss at the joining time.

Losses of life insurance companies' subsidiaries joining consolidated group

713‑535  Losses of entities whose membership interests are complying superannuation assets of life insurance company
 (1) This section applies if:
 (a) a *life insurance company becomes a *member of a *consolidated group at a time (the joining time); and
 (b) at the joining time, the life insurance company owns, either directly or indirectly through one or more interposed entities, all the *membership interests in yet another entity (the life insurance subsidiary) that becomes a *subsidiary member of the group at that time; and
 (c) all the following membership interests are *complying superannuation assets of the life insurance company:
 (i) the membership interests (if any) that the life insurance company owns directly in the life insurance subsidiary;
 (ii) the membership interests (if any) that the life insurance company owns directly in the interposed entities; and
 (d) the *head company of the group makes a *tax loss or *net capital loss under Subdivision 707‑A because of a transfer from the life insurance subsidiary.
 (2) This Act operates for the purposes of income years ending after the transfer as if:
 (a) the *tax loss were of the *complying superannuation class; or
 (b) the *net capital loss were from *complying superannuation assets.
 (3) Subdivisions 707‑B, 707‑C and 707‑D do not affect the *utilisation of the loss by the *head company of the *consolidated group.

713‑540  Losses of entities whose membership interests are segregated exempt assets of life insurance company
 (1) This section applies if:
 (a) a *life insurance company becomes a *member of a *consolidated group at a time (the joining time); and
 (b) at the joining time, the life insurance company owns, either directly or indirectly through one or more interposed entities, all the *membership interests in yet another entity (the life insurance subsidiary) that becomes a *subsidiary member of the group at that time; and
 (c) all the following membership interests are *segregated exempt assets of the life insurance company:
 (i) the membership interests (if any) that the life insurance company owns directly in the life insurance subsidiary;
 (ii) the membership interests (if any) that the life insurance company owns directly in the interposed entities.
 (2) A *tax loss or *net capital loss of the life insurance subsidiary for an income year ending before the joining time cannot be *utilised by the life insurance subsidiary for an income year ending after that time.
Note: This prevents the