Yumyum Thai Pty Ltd is in the business of running a Thai restaurant, serving traditional Thai food. It has two shareholders, Gary and Matt. Gary held 75% of the shares in company while Matt held 25%. After a decade of profitable operation, the company incurred tax losses of $200,000 in each of the last two income years. Gary sold two thirds of his shares to Matt on 1 July in this income year. Gary now holds 25% of the shares in the company, and Matt holds 75%. Gary incurred a capital loss of $300,000 in the share disposal

Immediately after the share transfer, Matt introduced a new menu in the restaurant. Instead of traditional Thai dishes, the new menu features largely French dishes with hint of Thai flavour. The name and decoration of the restaurant was also changed to reflect the new menu. The company also published a cookbook in October this income year featuring the signature dishes of the restaurant. The book was a bestseller, contributing a significant amount of revenue to the company. The company turned around in the income year and became profitable again.

Advise whether the company can use the carry forward losses in this income year.