Document ID: chunk:federal_register_of_legislation:C2025C00180:clause:1_3:p3
Version: federal_register_of_legislation:C2025C00180
Segment Type: clause
Provision Reference: sch 1 cl 3 (pt 3/7)
Character Range: 924571–927265

Commissioner gave the *initial head company instalment rate as mentioned in subsection (2), subparagraph (3)(c)(ii), subparagraph (4)(b)(ii) or subparagraph (4)(b)(iv) in an *instalment month.
 (4B) Treat subsection (2), (3) or (4) (as the case requires) as providing that Subdivision 45‑Q starts to apply to the company as the *provisional head company of the *MEC group at the start of the next *instalment month.
Note: For the application of this Subdivision to a monthly payer, see sections 45‑703 and 45‑910.

Notification of creation of MEC group from consolidated group
 (5) For the purposes of subsections (3) and (4), the Commissioner is notified of the creation of a *MEC group from a *consolidated group when the Commissioner receives a notice of the consolidation of the MEC group under subsection 719‑40(1) of the Income Tax Assessment Act 1997.

When the period ends
 (6) Subdivision 45‑Q stops applying to a company as the *provisional head company of a *MEC group at the earliest of the following times after the company becomes the provisional head company:
 (a) the end of the *instalment quarter during which the MEC group ceases to exist (other than because a *consolidated group is *created from the MEC group);
 (b) the end of the instalment quarter during which a consolidated group is created from the MEC group;
 (c) just before the instalment quarter during which another company is appointed as the provisional head company of the MEC group under subsection 719‑60(3) of the Income Tax Assessment Act 1997.
Note: The operation of this subsection because of paragraph (a) may be affected by section 45‑880 (as applied under this Subdivision).
 (7) To avoid doubt, Subdivision 45‑Q does not apply to a company as the *provisional head company of a *MEC group for any time at all if:
 (a) subsection (2), (3) or (4), and subsection (6), would, apart from this subsection, apply to the company; but
 (b) the time at which Subdivision 45‑Q would stop applying to the company under subsection (6) is before the time at which that Subdivision would start to apply to the company under subsection (2), (3) or (4).
 (8) To avoid doubt, Subdivision 45‑Q may apply to a company as the *provisional head company of a *MEC group at a time when the company is not in fact the provisional head company of the group.
Note: An example of this is when a company replaces another company as the provisional head company of a MEC group. Under this section and section 45‑920, Subdivision 45‑Q may start applying to the company as if it had already become the provisional head company when it is not yet such a company.

45‑917  Assumption for applying section 45‑710 (single entity rule)