Document ID: chunk:federal_register_of_legislation:C2010C00690:clause:1_4:p6
Version: federal_register_of_legislation:C2010C00690
Segment Type: clause
Provision Reference: sch 1 cl 4 (pt 6/8)
Character Range: 41912–44803

section 701‑5 would otherwise have.

[The next Division is Division 703.]

Division 703—Consolidated groups and their members

Guide to Division 703

703‑1  What this Division is about

      A consolidated group and a consolidatable group each consists of a head company and all the companies, trusts and partnerships that:

                (a) are resident in Australia; and
                (b) are wholly‑owned subsidiaries of the head company (either directly or through other companies, trusts and partnerships).
      A consolidatable group becomes consolidated at a time chosen by the company that was the head company at the time.

Table of sections

Basic concepts

703‑5 What is a consolidated group?
703‑10 What is a consolidatable group?
703‑15 Members of a consolidated group or consolidatable group
703‑20 Certain entities that cannot be members of a consolidated group or consolidatable group
703‑25 Australian residence requirements for trusts
703‑30 When is one entity a wholly‑owned subsidiary of another?
703‑35 Treating entities as wholly‑owned subsidiaries by disregarding employee shares
703‑40 Treating entities held through non‑fixed trusts as wholly‑owned subsidiaries
703‑45 Entities interposed between the head company and a subsidiary member of a consolidated group

Choice to consolidate a consolidatable group

703‑50 Choice to consolidate a consolidatable group

Consolidated group created when MEC group ceases to exist

703‑55 Creating consolidated groups from certain MEC groups

Notice of events affecting consolidated group

703‑60 Notice of events affecting consolidated group

[This is the end of the Guide.]

Basic concepts

703‑5  What is a consolidated group?

 (1) A consolidated group comes into existence:
 (a) on the day specified in a choice by a company under section 703‑50 as the day on and after which a *consolidatable group is taken to be consolidated; or
 (b) as described in section 703‑55 (about creating a consolidated group from a *MEC group).

Note: The day specified in a choice under section 703‑50 as the day on and after which a consolidatable group is taken to be consolidated may be a day before the choice is made.

 (2) The consolidated group continues to exist until the *head company of the group:
 (a) ceases to be a head company; or
 (b) becomes a member of a *MEC group.
The consolidated group ceases to exist when one of those events happens to the head company.

 (3) At any time while it is in existence, the consolidated group consists of the *head company and all of the *subsidiary members (if any) of the group at the time.

Note: A consolidated group continues to exist despite one or more entities ceasing to be subsidiary members of the group or becoming subsidiaries of the group, as long as the events described in subsection (2) do not happen to the head company. Thus a consolidated group may