Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The main objects of this Subdivision are:
(a) to provide for the transfer of a loss from an entity (the joining entity ) becoming a * member of a * consolidated group to the * head company of the group (so the head company may be able to * utilise it), if the joining entity could have utilised the loss if it had not become a member of the group; and
(b) to prevent the utilisation by any entity of a loss made by the joining entity, if the joining entity could not have utilised the loss if it had not become a member of the group.
Utilising a loss
(2) An entity utilises a loss:
(a) in the case of a * tax loss—to the extent it is deducted from an amount of the entity’s assessable income or * exempt income; and
(b) in the case of a * net capital loss—to the extent that it is applied to reduce an amount of the entity’s * capital gains; and
(c) in the case of an overall foreign loss in respect of a class of assessable foreign income (within the meaning of section 160AFD of the Income Tax Assessment Act 1936 )—to the extent that the loss is taken into account in reducing the entity’s income of that class.