Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p5
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 5/6)
Character Range: 6033747–6036413

an amount of its tax losses (other than film losses) in the bundle that:
 (i) is equal to the amount of *exempt income worked out under subsection 707‑310(3) for the transferee and the bundle; or
 (ii) if section 707‑335 affects the transferee's utilisation of losses in the bundle—is reasonable, having regard to that section; and
 (b) the transferee still has net exempt income for the year and tax losses (other than film losses) remaining in the bundle;
the fact the transferee still has net exempt income does not stop it deducting tax losses (other than film losses) remaining in the bundle from its assessable income for the year.

Limit on deduction
 (3) This section does not allow the deduction for an income year of an amount of losses in a *bundle so as to exceed the limit set by section 707‑310 or 707‑335 on *utilisation for the year of losses of that *sort in the bundle.

707‑345  Other provisions are subject to this Subdivision
  The rules in this Subdivision are additional to the provisions of this Act about *utilising losses that are outside this Subdivision. Those provisions have effect subject to this Subdivision.

Subdivision 707‑D—Special rules about losses

Table of sections
707‑400 Head company's business before and after consolidation not compared
707‑410 Exit history rule does not treat entity as having made a loss
707‑415 Application of losses with nil available fraction for certain purposes

707‑400  Head company's business before and after consolidation not compared
 (1) If:
 (a) the *business continuity test applies to a company that becomes a *head company of a *consolidated group at a time; and
 (b) apart from this section, the business continuity test period would start before that time and end after it;
the business continuity test period starts at that time (and ends when it would end apart from this section), for the purposes of that application of the business continuity test.
 (2) Subsection (1) does not apply for the purposes of working out whether the company can transfer to itself a loss under section 707‑120.

707‑410  Exit history rule does not treat entity as having made a loss
 (1) To avoid doubt, if the *head company of a *consolidated group makes a loss of a particular *sort and an entity ceases to be a *subsidiary member of the group, the entity is not taken because of section 701‑40 (the exit history rule):
 (a) to have made the loss; or
 (b) to have made another loss of the same sort because of the circumstances that caused the head company to make the loss.
 (2) It does not matter whether the *head company makes the loss because of a transfer under Subdivision 707‑A (whether from