Document ID: chunk:federal_register_of_legislation:C2019C00214:clause:1_1:p3
Version: federal_register_of_legislation:C2019C00214
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 3/7)
Character Range: 15935–18806

income years earlier than the transfer year, to the extent that they were not utilised before the completion time; and
 (d) any tax loss it would have incurred for the transfer year were the transfer year to have ended at the completion time;
worked out subject to the modifications set out in this section.
Note: If the entity choosing to transfer losses also chooses an asset roll‑over for the same arrangement, none of the CGT events for the roll‑over will contribute towards a loss transferred under this Subdivision (see section 311‑45 and subsections 311‑50(1) and 311‑55(1)).

Modifications for transferred losses
 (2) For a choice under Subdivision 311‑B by an entity that is a trustee of a *complying superannuation fund, work out those losses by only considering *capital gains, *capital losses, assessable income and deductions to the extent that they are reasonably attributable to the *accrued default amount of the member.
 (3) For a choice under Subdivision 311‑B by an entity that is a *life insurance company, work out those losses by only considering the following to the extent that they are reasonably attributable to the *accrued default amount of the member, and to a *complying superannuation/FHSA life insurance policy issued by the transferring entity and held by the original fund:
 (a) *capital gains from *complying superannuation/FHSA assets;
 (b) *capital losses from complying superannuation/FHSA assets;
 (c) assessable income covered by subsection 320‑137(2) (about complying superannuation/FHSA assets);
 (d) deductions covered by subsection 320‑137(4) (about complying superannuation/FHSA assets).
 (4) For a choice under Subdivision 311‑B by an entity that is a trustee of a *pooled superannuation trust, work out those losses by only considering *capital gains, *capital losses, assessable income and deductions to the extent that they are reasonably attributable:
 (a) to the *accrued default amount of the member; and
 (b) to units in the transferring entity held by the original fund.

311‑25  Effect of transferring a net capital loss
  To the extent that a loss of a kind referred to in paragraph 311‑20(1)(a) or (b) is transferred to a receiving entity:
 (a) if the loss is for an income year earlier than the transfer year—the transferring entity is taken not to have made the loss for that earlier income year; and
 (b) if the loss is for the transfer year—the following is reduced by an amount equal to the transferred amount:
 (i) if the transferring entity is a *life insurance company—the sum of the transferring entity's *capital losses from *complying superannuation/FHSA assets for the transfer year;
 (ii) otherwise—the sum of the transferring entity's capital losses for the transfer year; and
 (c) if the receiving entity is a life insurance company—an amount equal to the transferred amount is taken to be a capital