Income Tax Assessment Act 1997

The unutilised amounts of a designated infrastructure project entity ' s tax losses are increased each year by the long term bond rate. A designated infrastructure project entity is a fixed trust or company that:

(a) carries on an infrastructure project designated under Subdivision 415-C ; and

(b) only engages, and has only ever engaged, in activities for the purposes of carrying on that designated infrastructure project.

The tests that apply in relation to tax losses and bad debts if there is a change of ownership of an entity are modified so that periods during which the entity is a designated infrastructure project entity are not tested.

The loss utilisation rules in Subdivision 707-C do not apply if the head company of a consolidated group is a designated infrastructure project entity after another designated infrastructure project entity joins the group.