New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002 (117 of 2002)

Schedule 1   Consolidation: assessable income and deductions spread over several membership or non-membership periods

Income Tax Assessment Act 1997

2   Subsection 701-30(3) (note)

Repeal the note, substitute:

Note: Other provisions of this Part are to be applied in working out the taxable income or loss, for example:

· section 701-40 (Exit history rule); and

· Subdivision 716-A (about assessable income and deductions spread over several membership or non-membership periods); and

· section 716-850 (about grossing up threshold amounts for periods of less than 365 days).

Subdivision 716 also affects the tax position of the head company of a group of which the entity has been a subsidiary member for some but not all of the income year.