Income Tax Assessment Act 1997
If, apart from this Subdivision:
(a) the originating company would have made a *capital loss (except a capital loss that would be disregarded under a provision of this Act other than this Subdivision) as a result of the deferral event; or
(b) the originating company would have become entitled to a deduction in respect of the deferral event; or
(c) where the originating company is a partner in a partnership - the partnership would have become entitled to a deduction in respect of the deferral event;
the capital loss, the deduction or the partner ' s share of the deduction, as the case may be, is disregarded.170-270(2)
To avoid doubt, the amount of the *capital loss, deduction, or partnership deduction, referred to in this section is:
(a) the amount remaining after applying Division 723 or section 727-615 ; or
(b) nil, if none of the amount remains after applying that section or Division.
Division 723 and section 727-615 reduce a loss realised for income tax purposes by a realisation event happening to a non-depreciating asset (in the case of Division 723 ) or an affected interest in a losing entity under an indirect value shift (in the case of section 727-615 ).