Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p44
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 44/45)
Character Range: 6018765–6021365

A bundle continues to exist even if the losses in it are transferred again under Subdivision 707‑A after the initial transfer time.
 (4) A loss ceases to be included in a *bundle at the first time for which it is true that the loss cannot be *utilised or otherwise reduced by any entity for an income year ending after that time.
 (5) If, had a loss been made by a company as assumed under a provision of Division 170, the loss would have been transferred under Subdivision 707‑A, this Subdivision and other provisions that relate to or may affect the *available fractions for one or more *bundles of losses (including sections 707‑140 and 719‑325) operate as if the transfer had occurred.
Note: Section 707‑140 provides for a choice to cancel a transfer under Subdivision 707‑A. Section 719‑325 provides for a choice to cancel all losses in certain bundles of losses. A choice under one of those sections may result in a bundle not coming into existence, or not being in existence after a certain time.
 (6) To avoid doubt, a choice under section 707‑145 or 719‑325, as it operates because of subsection (5) of this section, relating to the loss does not affect or prevent:
 (a) a transfer of the loss that would have occurred under Subdivision 707‑A as described in another application of that subsection involving a different company; or
 (b) *utilisation of the loss by the company that actually made the loss and is different from the company assumed under Division 170 to have made the loss.
Note: Therefore a choice under section 707‑145 or 719‑325, as operating because of subsection (5) of this section, will be able to cause only one bundle not to exist, and will not affect the existence of other bundles that are treated as existing because of other operations of that subsection.

707‑320  What is the available fraction for a bundle of losses?
 (1) The available fraction for a *bundle of losses at a time is:
where:
transferee's adjusted market value at the initial transfer time means the amount that would be the *market value, at the initial transfer time, of the transferee to which the losses in the *bundle were transferred at that time if:
 (a) the transferee did not have a loss of any *sort for an income year ending before that time; and
 (b) the balance of the transferee's *franking account were nil at that time.
Note: The value for the transferee will be worked out on the basis that subsidiary members of the consolidated group headed by the transferee are part of the transferee, because of section 701‑1 (the single entity rule).
 (2) However, if an event described in