Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p24
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 24/80)
Character Range: 4401195–4404031

of a character for the income year is allocated from a trust component deficit of another character for the income year in accordance with subsections 276‑330(2), (3) and (4).

Carry‑forward trust component deficit decreases trust component
 (3) If the *AMIT has a *carry‑forward trust component deficit of that character for the income year, decrease the amount of the *trust component by the amount of that deficit.
Note: A carry‑forward trust component deficit for the income year is worked out in respect of the previous income year under subsection 276‑330(5).

FITO allocation amount increases trust component with the character of foreign source income
 (4) If:
 (a) the character of the *trust component is a character relating to *ordinary income, or *statutory income, from a source other than an *Australian source; and
 (b) the *AMIT has a *FITO allocation amount for the income year;
increase the amount of the trust component by that FITO allocation amount.
Note: A FITO allocation amount for the income year is worked out in accordance with section 276‑335.

276‑330  Meaning of cross‑character allocation amount and carry‑forward trust component deficit

Section applies to trust component of assessable income character
 (1) This section applies if the *trust component is of a character relating to assessable income.

Cross‑character allocation amount
 (2) The trustee may, in accordance with subsection (3), allocate a *trust component deficit (if any) of that character for the income year against the *AMIT's other trust components for that income year that are also of a character relating to assessable income.
 (3) For the trustee to make an allocation under subsection (2) the trustee:
 (a) must allocate that *trust component deficit between those other *trust components on a reasonable basis; and
 (b) cannot allocate more to a trust component than the amount of that trust component.
 (4) If the trustee allocates an amount under subsection (2) to a *trust component of a character for that income year, the amount allocated is a cross‑character allocation amount of that character for that income year.

Carry‑forward trust component deficit
 (5) If there is an amount of that *trust component deficit remaining after allocating it in accordance with subsection (2), the remaining amount is the *AMIT's carry‑forward trust component deficit of the character mentioned in subsection (1) for the next income year.

276‑335  Meaning of FITO allocation amount
 (1) This section applies if:
 (a) the *AMIT has a *trust component of the character of *foreign income tax paid that counts towards a *tax offset under Division 770; and
 (b) the AMIT has a *trust component deficit for the income year of that character.
 (2) The *AMIT has a FITO allocation amount for the income year equal to the sum of:
 (a) that