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DV 6: Formula for calculating maximum deduction
or “How to calculate the maximum tax deduction for a master fund”
You could also call this:

“Allowing leftover superannuation fund expenses to be used in future years”

If you’re part of a member superannuation fund, sometimes you might spend more money than you can transfer to a master fund. This can happen in two ways: either you and the master fund agree on a limit, or there’s a maximum amount set that you can’t go over.

When this happens, you don’t have to lose that extra money you’ve spent. You can keep it and move it over in a later year when you have more room to transfer funds.

In the same year that you’re carrying forward this extra spending, you can also choose to treat some or all of it as a loss balance for your taxes. This means you can use it to reduce the amount of tax you might have to pay.

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Next up: DV 8: Non-profit organisations

or “Tax reduction for non-profit organisations that don't distribute property to members”
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Part D Deductions
Expenditure specific to certain entities

DV 7Carry forward of expenditure

  1. This section applies when a member superannuation fund incurs expenditure that is more than—

  2. the member fund and master fund agree can be transferred; or
    1. the maximum amount that can be transferred.

      1. The member fund may carry forward the expenditure for transfer in a later income year.

      2. If the member fund carries forward expenditure in an income year, the member fund may treat some or all of the expenditure as a loss balance for the corresponding tax year.

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      Notes
      • Section DV 7(1) heading: substituted (with effect on 1 April 2008), on , by section 107(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section DV 7(1): substituted (with effect on 1 April 2008), on , by section 107(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section DV 7(1B) heading: inserted (with effect on 1 April 2008), on , by section 107(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
      • Section DV 7(1B): inserted (with effect on 1 April 2008), on , by section 107(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).