New Business Tax System (Consolidation and Other Measures) Act 2003 (16 of 2003)

Schedule 7   Consolidation: interactions between Consolidation rules and other rules

Part 3   Consequential amendment of the Income Tax Assessment Act 1997

3   Subsection 165-115BB(2) (definition of residual unrealised net loss )

Repeal the definition, substitute:

previous capital losses, deductions or trading stock losses means the total of the following:

(a) capital losses that the company made, deductions to which the company became entitled, or trading stock losses that the company made, as a result of events earlier than the relevant event in respect of assets that the company owned at the *changeover time;

(b) each reduction that section 715-105 (as applying to the company as the *head company of a *consolidated group or *MEC group) makes in respect of such an asset because an entity ceased before the time of the relevant event to be a *subsidiary member of the group (but counting only the greater or greatest such reduction if 2 or more are made for the same asset);

or nil if there are none.