Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies to assets ( ordinary assets ) of a * life insurance company other than:
(a) * complying superannuation assets; or
(b) * segregated exempt assets.
(2) In working out a * life insurance company's * net capital gain or * net capital loss for the income year, * capital losses from ordinary assets can be used only to reduce * capital gains from ordinary assets.
(3) If some or all of a * capital loss from an ordinary asset cannot be applied in an income year, the unapplied amount can be applied in the next income year in which the company's * capital gains from ordinary assets exceed the company's capital losses (if any) from ordinary assets.
(4) If the company has 2 or more unapplied * net capital losses from ordinary assets, the company must apply them in the order in which they were made.
Note: This section affects the amount of assessable income that is to be taken into account in working out a taxable income or tax loss of the ordinary class: see sections 320 - 139 and 320 - 143.