Income Tax Assessment Act 1997
This section applies if the *trust component is of a character relating to assessable income. Cross-character allocation amount 276-330(2)
The trustee may, in accordance with subsection (3), allocate a *trust component deficit (if any) of that character for the income year against the *AMIT ' s other trust components for that income year that are also of a character relating to assessable income. 276-330(3)
For the trustee to make an allocation under subsection (2) the trustee:
(a) must allocate that *trust component deficit between those other *trust components on a reasonable basis; and
(b) cannot allocate more to a trust component than the amount of that trust component. 276-330(4)
If the trustee allocates an amount under subsection (2) to a *trust component of a character for that income year, the amount allocated is a cross-character allocation amount of that character for that income year. Carry-forward trust component deficit 276-330(5)
If there is an amount of that *trust component deficit remaining after allocating it in accordance with subsection (2), the remaining amount is the *AMIT ' s carry-forward trust component deficit of the character mentioned in subsection (1) for the next income year.
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