Tax Laws Amendment (2004 Measures No. 2) Act 2004 (83 of 2004)

Schedule 1   Life insurance companies

Part 1   Amendments commencing on 30 June 2000

Taxation Administration Act 1953

84   Subsection 45-330(3) in Schedule 1 (method statement)

Repeal the method statement, substitute:

Method statement

Step 1. Recalculate the taxable income of the *ordinary class for the *base assessment on the basis that it did not include any *net capital gain.

Step 2. Add to the step 1 result the deductions for *tax losses of the *ordinary class that were used in making the *base assessment.

Step 3. Reduce the step 2 result by the amount of any *tax losses of the *ordinary class, to the extent that the company can carry them forward to the next income year.

Step 4. Add to the step 3 result the taxable income of the *complying superannuation class for the *base assessment.

Step 5. Add to the step 4 result the deductions for *tax losses of the *complying superannuation class that were used in making the *base assessment.

Step 6. Reduce the step 5 result by the amount of any *tax losses of the *complying superannuation class, to the extent that the company can carry them forward to the next income year.

The result of this step is the adjusted taxable income of the company for the *base year.