Document ID: chunk:federal_register_of_legislation:C2025C00029:section:9:p17
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 9 (pt 17/19)
Character Range: 7069296–7072066

the previous 15 income years (to the extent that they have not already been applied under this paragraph in respect of any of those previous income years).
The amount of the deduction is the total amount applied under paragraph (b).
 (3) For the purposes of paragraph (2)(b):
 (a) apply *FRT disallowed amounts in sequence, where a FRT disallowed amount for an earlier income year is applied before a FRT disallowed amount from a later income year; and
 (b) apply FRT disallowed amounts up to, but not beyond, the excess mentioned in paragraph (1)(b).
Note: As a result of paragraph (3)(b), part of a FRT disallowed amount may be applied against the excess mentioned in paragraph (1)(b).

820‑57  Meaning of FRT disallowed amount
  An entity has a fixed ratio test disallowed amount (or FRT disallowed amount) for an income year equal to:
 (a) if *debt deductions of the entity for the income year are disallowed under subsection 820‑46(1) and the amount disallowed is worked out in accordance with paragraph 820‑50(1)(a) (fixed ratio test applies)—the amount disallowed; or
 (b) otherwise—zero.

820‑58  FRT disallowed amount is treated as zero where subsequent choice means fixed ratio test does not apply
 (1) Subsection (2) applies if:
 (a) an entity has not made a choice under subsection 820‑46(3) or (4) in relation to an income year; and
 (b) the entity makes a choice under subsection 820‑46(3) or (4) in relation to a subsequent income year.
 (2) Despite section 820‑57, for the purpose of applying section 820‑56 in respect of that subsequent income year and later income years, treat the entity as having a *FRT disallowed amount of zero for every income year before that subsequent income year.

820‑59  When FRT disallowed amount is treated as zero for companies and trusts
 (1) This section applies if an entity is a company or a trust.
 (2) This section applies for the purposes of applying a *FRT disallowed amount of the entity for an income year (the disallowance year) under paragraph 820‑56(2)(b), in order to work out the amount of a deduction from its assessable income for another income year (the deduction year) under subsection 820‑56(1).
 (3) Despite section 820‑57, treat the *FRT disallowed amount for the disallowance year as being zero unless:
 (a) if the entity is a company—subsection (4) applies; or
 (b) if the entity is a trust—subsection (5) applies.

Rules for companies
 (4) This subsection applies if, assuming that:
 (a) the *FRT disallowed amount were a *tax loss; and
 (b) the disallowance year were the *loss year; and
 (c) the following provisions were disregarded:
 (i) subsection 165‑115B(3);
 (ii) subsection 165‑115BA(5);
 (iii) section 415‑35;
Divisions 165, 166 and 167 would not prevent the company from deducting the