INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)
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Hide history noteThis section applies to a taxpayer in respect of a disposal year of income if:
(a) there is a roll-over asset, or there are roll-over assets, in respect of the taxpayer in respect of that year of income; and
(b) there is a gross non-goodwill roll-over amount, or there are gross non-goodwill roll-over amounts, that apply to the taxpayer in respect of the disposal year of income. 160ZZPR(2) Gross non-goodwill amount to reduce capital losses.
The gross non-goodwill roll-over amount, or the sum of the gross non-goodwill roll-over amounts, is to be applied, to the maximum extent possible:
(a) first, in reduction of any capital losses that the taxpayer is taken to have incurred in the disposal year of income; and
(b) then, in reduction of any net capital losses that:
(i) the taxpayer is taken to have incurred in respect of years of income ( applicable years of income ) earlier than the disposal year of income but not earlier than the 1995-96 year of income; and
(ii) would, apart from this Division, be applied in determining whether a net capital gain accrues to the taxpayer in respect of the disposal year of income (if sufficient capital gains were to accrue in the disposal year of income).
In making reductions under paragraph (2)(b) of net capital losses incurred in respect of 2 or more applicable years of income, reductions are not to be made in respect of net capital losses incurred in respect of a particular applicable year of income until reductions are made, to the maximum extent possible, of net capital losses incurred in respect of any earlier applicable year of income or earlier applicable years of income.
160ZZPR(4) If capital losses wholly absorb gross non-goodwill roll-over amount.If no part of the gross non-goodwill roll-over amount, or of the sum of the gross non-goodwill roll-over amounts, remains after the application of that amount or sum under subsection (2), there is no net non-goodwill roll-over amount applying to the taxpayer in respect of the disposal year of income.
160ZZPR(5) Net non-goodwill roll-over amount.If any part of the gross non-goodwill roll-over amount, or of the sum of the gross non-goodwill roll-over amounts, remains after the application of that amount or sum under subsection (2), the amount remaining is taken to be the net non-goodwill roll-over amount applying to the taxpayer in respect of the disposal year of income.
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