INCOME TAX ASSESSMENT ACT 1997 - SECT 276.330 Meaning of cross - character allocation amount and carry - forward trust component deficit
INCOME TAX ASSESSMENT ACT 1997 - SECT 276.330
Meaning of cross - character allocation amount and carry - forward trust component deficitSection applies to trust component of assessable income character
(1) This section applies if the * trust component is of a character relating to assessable income.
Cross - character allocation amount
(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.
(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.
(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
(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.