Income Tax Assessment Act 1936
A notional loss or notional net income of the trust must be worked out for each period into which the income year has been divided in accordance with Subdivision 268-B . 268-30(2)
The trust has a notional loss for a period if the deductions attributed to the period under section 268-35 exceed the assessable income attributed to the period under section 268-40 . The notional loss is the amount of the excess.
For a period during which the trust was in partnership, the notional loss is worked out under Subdivision 268-D .268-30(3)
On the other hand, if that assessable income exceeds those deductions, the trust has a notional net income for the period, equal to the excess.
For a period during which the trust was in partnership, the notional net income is worked out under Subdivision 268-D .268-30(4)
If the trust has a notional loss for none of the periods in the income year, this Subdivision has no further application, and the trust ' s net income for the income year is calculated in the usual way.
The usual way of working out net income is set out in section 95.