Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_6:p41
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 6 (pt 41/63)
Character Range: 440738–443361

12‑441(1) to the result of paragraph (e).
If the result of paragraph (f) is a positive number, the concessional cross staple rent cap is that result. Otherwise, the concessional cross staple rent cap is nil.
 (3) For the purposes of paragraphs (2)(a) and (b):
 (a) treat the amount of a *tax loss, or of a partnership loss (within the meaning of section 90 of the Income Tax Assessment Act 1936), as a negative number; and
 (b) disregard any *tax loss for a previous income year of the relevant asset entity or relevant operating entity.

12‑445  Asset entity to allocate deductions first against rental income that is not MIT cross staple arrangement income
 (1) This section applies if:
 (a) an entity is an *asset entity in relation to an income year and is a *stapled entity in relation to a *cross staple arrangement; and
 (b) the entity is entitled to a deduction for the income year against its assessable income that arises from *rent from land investment that it derives or receives in the income year; and
 (c) the entity derives, receives or makes an amount of *excepted MIT CSA income in the income year (disregarding this section and subsection 12‑441(2)); and
 (d) the amount of that excepted MIT CSA income exceeds the entity's *concessional cross staple rent cap for the income year.
 (2) The amount of the deduction can only be deducted against an amount of assessable income of the *asset entity as follows:
 (a) first, the amount can only be deducted against an amount of assessable income that is *excepted MIT CSA income, to the extent that the excepted MIT CSA income does not exceed the entity's *concessional cross staple rent cap for the income year;
 (b) next, if an amount of the deduction remains after applying the rule in paragraph (a), the amount can only be deducted against an amount of assessable income that is *MIT cross staple arrangement income;
 (c) next, if an amount of the deduction remains after applying the rules in paragraphs (a) and (b), the amount can be deducted against an amount of assessable income in accordance with other provisions of this Act.
 (3) If the *asset entity is not a *managed investment trust in relation to the income year, for the purposes of determining whether an amount of its assessable income for the income year is *MIT cross staple arrangement income, treat it as a managed investment trust in relation to the income year.

12‑446  Meaning of MIT trading trust income
 (1) This section applies if:
 (a) an amount is included in the assessable income for an income year of a *managed investment trust in relation to the income year (worked out for