Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section limits the amount of losses in a particular * bundle of losses transferred under Subdivision 707‑A that can be * utilised by the transferee for an income year if:
(a) the losses in the bundle are transferred to the transferee from another entity after the start of the income year; or
(b) the value of the * available fraction for the bundle changes at a time within the period (the transferee’s loss‑holding period ) described in subsection (2).
(2) The transferee’s loss‑holding period:
(a) starts at the start of the income year or, if the losses in the * bundle were transferred to the transferee from another entity during the income year, at the time of the transfer; and
(b) ends when one of these events occurs:
(i) the income year ends;
(ii) the transferee becomes a * subsidiary member of a * consolidated group.
(3) The transferee cannot * utilise for the income year more of the losses than is reasonable having regard to:
(a) the method in section 707‑310 for working out the maximum amount of the losses the transferee could utilise for the income year (apart from this section); and
(b) the number of days in the transferee’s loss‑holding period; and
(c) the value or values of the * available fraction for the * bundle during the transferee’s loss‑holding period; and
(d) the number of days in the transferee’s loss‑holding period for which the available fraction for the bundle has a particular value; and
(e) the principle that, if the transferee transferred the losses to itself under Subdivision 707‑A after the start of the income year, its utilisation of the losses should, for the part of the transferee’s loss‑holding period before the transfer, be affected by the initial value of the available fraction for the bundle; and
(f) any other relevant matters.
(4) Section 707‑310 has effect subject to this section.