This Division modifies the way the rules in Division 165 apply to a listed public company (and also its 100% subsidiaries). It makes it easier for the company to comply with those rules:

(1) This Subdivision modifies the way Subdivision 165-A applies to a company that is a *listed public company at all times during a period (the test period) consisting of the *loss year, the income year and any intervening period.

(2) The *listed public company is taken to have met the conditions in section 165-12 (which is about the company maintaining the same owners) if there is *substantial continuity of ownership of the company as between the start of the *test period and each of these other times in the period:

(3) The *listed public company is taken to have failed to meet the conditions in section 165-12 if there is no *substantial continuity of ownership of the company as between the start of the *test period and one or more of the other times referred to in subsection (2).

(4) However, if the *listed public company satisfies the *same business test for the income year (the same business test period), it is taken to have satisfied the condition in section 165-13 (which is about the company carrying on the same business).

(5) Apply the *same business test to the *business that the *listed public company carried on immediately before the first time (the test time) covered by paragraph (2)(a) or (b) for which there was no *substantial continuity of ownership of the company as between the start of the test period and that time.

(1) This Subdivision also modifies the way Subdivision 165-A applies to a company that is not a *listed public company, but only if the conditions in subsections (2) and (3) are met.

(2) The company (the subsidiary) must be a *100% subsidiary of another company (the holding company) at all times during a period consisting of:

(3) Also, the *holding company must be a *listed public company at all times during that period.

(4) If the conditions are met then, for the purposes of applying Subdivision 165-A to the subsidiary, this Subdivision applies to the subsidiary as if:

(Subdivisions 166-D, 166-F and 166-G apply to the subsidiary in the same way and for the same purpose.)

(1) The *listed public company or subsidiary can choose that Subdivision 165-A is to apply to it for the income year without the modifications made by this Subdivision.

(2) The company must choose on or before the day it lodges its *income tax return for the income year, or before a later day if the Commissioner allows.

(1) This Subdivision modifies the way Subdivision 165-B applies to a company that is a *listed public company at all times during the income year (the test period).

(2) If there is no *abnormal trading in *shares in the *listed public company during the *test period, it is taken to have met the condition in paragraph 165-35(a) (which is about there being persons having *more than a 50% stake in it during the whole of the income year).

(3) If there is *abnormal trading, but there is *substantial continuity of ownership of the company as between the start of the *test period and the time of each abnormal trading, the company is also taken to have met the condition in paragraph 165-35(a).

(1) If the *listed public company must calculate its taxable income and *tax loss for the income year under Subdivision 165-B, then, in dividing the income year into periods, apply subsection (2) instead of subsection 165-45(3).

(2) The last period ends at the end of the income year. Each period (except the last) ends at the earlier of:

(3) In working out when a period ends, disregard an *abnormal trading if there is *substantial continuity of ownership of the company as between the start of the period and the time of the abnormal trading.

(1) This Subdivision also modifies the way Subdivision 165-B applies to a company that is not a *listed public company, but only if the conditions in subsections (2) and (3) are met.

(2) The company (the subsidiary) must be a *100% subsidiary of another company (the holding company) at all times during the income year of the subsidiary.

(3) Also, the *holding company must be a *listed public company at all times during that income year.

(4) If the conditions are met then, for the purposes of applying Subdivision 165-B to the subsidiary, this Subdivision applies to the subsidiary as if:

(Subdivisions 166-D, 166-F and 166-G apply to the subsidiary in the same way and for the same purpose.)

(1) The *listed public company or subsidiary can choose that Subdivision 165-B is to apply to it for the income year without the modifications made by this Subdivision.

(2) The company must choose on or before the day it lodges its *income tax return for the income year, or before a later day if the Commissioner allows.

This Subdivision has the tests to work out whether a listed public company has maintained the same owners as between different times.

(1) There is substantial continuity of ownership of the *listed public company as between the start of the *test period and another time in the test period if (and only if) the conditions in this section are met.

(2) There must be persons (none of them companies) who had *more than 50% of the voting power in the *listed public company at the start of the *test period. Also, those persons must have had *more than 50% of the voting power in the *listed public company immediately after the other time in the test period.

(3) There must be persons (none of them companies) who had rights to *more than 50% of the *listed public company’s *dividends at the start of the *test period. Also, those persons must have had rights to *more than 50% of the *listed public company’s dividends immediately after the other time in the test period.

(4) There must be persons (none of them companies) who had rights to *more than 50% of the *listed public company’s capital distributions at the start of the *test period. Also, those persons must have had rights to *more than 50% of the *listed public company’s capital distributions immediately after the other time in the test period.

(5) To work out whether a condition in this section was satisfied at a time (the ownership test time), apply the ownership test for that condition.

If it is the case, or it is reasonable to assume, that there are persons (none of them companies) who, at the *ownership test time, between them control, or are able to control, the voting power in the *listed public company (whether directly, or indirectly through one or more interposed entities), those persons have more than 50% of the voting power in the listed public company at that time.

If it is the case, or it is reasonable to assume, that there are persons (none of them companies) who, at the *ownership test time, have between them the right to receive for their own benefit (whether directly, or *indirectly through one or more interposed entities) more than 50% of any *dividends that the *listed public company may pay, those persons have rights to more than 50% of the listed public company’s dividends at that time.

If it is the case, or it is reasonable to assume, that there are persons (none of them companies) who, at the *ownership test time, have between them the right to receive for their own benefit (whether directly, or *indirectly through one or more interposed entities) more than 50% of any distribution of capital of the *listed public company, those persons have rights to more than 50% of the listed public company’s capital distributions at that time.

(1) The rules in these sections also apply for the purposes of an ownership test in this Subdivision:

(2) The rule in section 165-180 (which is about arrangements affecting beneficial ownership of *shares) also applies for the purposes of an ownership test in this Subdivision as if the reference to a particular time during the ownership test period were a reference to the ownership test time.

This Subdivision has rules which make it easier for the listed public company to satisfy the ownership tests in Subdivision 166-D.

All shareholdings of less than 1% in the company are treated as if they were held by a single notional entity. This means that the company does not have to trace through to the persons who beneficially own those shares.

A similar rule applies if another listed public company is interposed between the company and those persons. All shareholdings of less than 1% in the interposed company are treated as if they were held by a different single notional entity. This means that the company does not have to trace through to the persons who beneficially own those shares in the interposed company.

This Subdivision modifies how the ownership tests are applied to the *listed public company (the head company) if the company has:

(1) This Subdivision also modifies how the ownership tests are applied to the *head company if another *listed public company (the interposed company) meets the conditions in subsections (2) and (3).

(2) The *interposed company must be interposed between the *head company and persons (none of them companies) who:

(3) The *interposed company must have:

(1) The ownership tests in sections 166-150, 166-155 and 166-160 are applied to the *head company as if, at the *ownership test time, a single notional entity (the notional shareholder):

(2) The tests are also applied to the *head company as if, at the *ownership test time, for each *interposed company, a different single notional entity (the notional shareholder):

(3) The tests are also applied to the *head company as if, at the *ownership test time:

(1) If the *ownership test time is after the start of the *test period and:

is greater than:

the notional shareholder is taken to control voting power in the company at that time only to the extent that it controlled it at the start of that period.

(2) If the *ownership test time is after the start of the *test period and:

is greater than:

the notional shareholder is taken to have the right to receive the lower percentage of the dividends or distributions of capital at that time.

(1) If all the *shares in the *head company or *interposed company of which an entity is the registered holder at the *ownership test time carry (between them) less than 1% of the voting power in the company, those shares (except shares that are *part of a substantial shareholding) constitute a voting shareholding of less than 1% in the company at that time.

(2) If all the *shares in the *head company or *interposed company of which an entity is the registered holder at the *ownership test time carry (between them) the right to receive less than 1% of any *dividends that the company may pay, those shares (except shares that are *part of a substantial shareholding) constitute a dividend shareholding of less than 1% in the company at that time.

(3) If all the *shares in the *head company or *interposed company of which an entity is the registered holder at the *ownership test time carry (between them) the right to receive less than 1% of any distribution of capital of the company, those shares (except shares that are *part of a substantial shareholding) constitute a capital shareholding of less than 1% in the company at that time.

(1) *Shares in a company begin to be part of a substantial shareholding of a person when the person gives the company:

whichever happens first.

(2) The *shares stop being part of the substantial shareholding when the person gives the company:

whichever happens first.

This Subdivision does not apply unless, at the *ownership test time, all the *voting shares in the *head company carry (between them):

This Subdivision does not apply for the purposes of section 166-5 or 166-20 if the Commissioner considers it reasonable to assume that the *head company would not meet the conditions in that section if it were not for the rules in this Subdivision.

This Subdivision has rules which make it easier for the listed public company to satisfy the ownership tests in Subdivision 166-D.

The company does not have to trace through any complying superannuation funds, complying approved deposit funds or special companies that are interposed between the company and persons who control any of the voting power in the company, or who have rights to its dividends or capital.

(1) This section modifies how the ownership test in section 166-150 (about control of voting) is applied to the *listed public company if:

(2) If the fund or *special company has more than 50 *members, the test is applied as if, at the *ownership test time, the fund or special company were a person (other than a company) who controlled the voting power in the *listed public company that those persons control (or are able to control).

(3) However, if the fund or *special company has 50 *members or less, the test is applied as if, at the *ownership test time, each member were a person (other than a company) who controlled an equal proportion of the voting power in the *listed public company that those persons control (or are able to control).

(4) The test is applied as if, at the *ownership test time, the voting power in the *listed public company that those persons control (or are able to control) were not controlled by them (except as provided by subsection (3)).

(1) This section modifies how the ownership test in section 166-155 (about *dividend rights) or 166-160 (about capital rights) is applied to the *listed public company if:

(2) If the fund or *special company has more than 50 *members, the test is applied as if, at the *ownership test time, the fund or special company were a person (other than a company) who had the right to receive, for the person’s own benefit, that percentage of those *dividends or distributions of capital of the *listed public company.

(3) However, if the fund or *special company has 50 *members or less, the test is applied as if, at the *ownership test time, each member were a person (other than a company) who had a right to receive, for the person’s own benefit, an equal proportion of those *dividends or distributions of capital.

(4) The test is applied as if, at the *ownership test time, the persons (other than companies) who have the right to receive that percentage of those *dividends or distributions of capital did not have that right (except as provided by subsection (3)).