Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) At the joining time, the loss is transferred from the joining entity to the * head company of the joined group (even if they are the same entity), to the extent (if any) that the loss could have been * utilised by the joining entity for an income year consisting of the * trial year if:
(a) at the joining time, the joining entity had not become a * member of the joined group (but had been a * wholly‑owned subsidiary of the head company if the joining entity is not the head company); and
(b) the amount of the loss that could be utilised for the trial year were not limited by the joining entity’s income or gains for the trial year.
What is the trial year ?
(2) The trial year is the period:
(a) starting at the latest of these times:
(i) the time 12 months before the joining time;
(ii) the time the joining entity came into existence;
(iii) the time the joining entity last ceased to be a * subsidiary member of a * consolidated group, if the joining entity had been a member of a consolidated group before the joining time but was not a * member of a consolidated group just before the joining time; and
(b) ending just after the joining time.
Same business test involving trial year
(3) When working out whether the joining entity carried on the same business throughout the * trial year (or a period including the trial year) as it carried on at a particular time, assume that the entity carried on at and just after the joining time the same business that it carried on just before the joining time.
Transfer of loss for income year overlapping trial year
(4) If the loss was made by the joining entity for an income year all or part of which occurs in the * trial year, the transfer of the loss under subsection (1) is not prevented by the fact that the loss was made for that income year.