Income Tax Assessment Act 1997
You may choose:
(a) the order in which your *tax losses are reduced; and
(b) the amount applied to reduce each of those losses;
so long as the *total net forgiven amount is applied, to the maximum extent possible, in reduction of those losses.245-120(2)
If you do not make a choice for the purposes of subsection (1), the Commissioner may make the choice on your behalf in a reasonable way.