Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 9/10)
Character Range: 5812942–5816055

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.
Note: The group does not cease to exist in some cases where a shelf company is interposed between the head company and its former members: see subsection 615‑30(2) and section 703‑70.
 (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 come to consist of a head company alone at various times.

703‑10  What is a consolidatable group?
 (1) A consolidatable group consists of:
 (a) a single *head company; and
 (b) all the *subsidiary members of the group.
 (2) To avoid doubt, a consolidatable group cannot consist of a *head company alone.

703‑15  Members of a consolidated group or consolidatable group
 (1) An entity is a member of a *consolidated group or *consolidatable group while the entity is:
 (a) the *head company of the group; or
 (b) a *subsidiary member of the group.
 (2) At a particular time in an income year, an entity is:
 (a) a head company if all the requirements in item 1 of the table are met in relation to the entity; or
 (b) a subsidiary member of a *consolidated group or *consolidatable group if all the requirements in item 2 of the table are met in relation to the entity:

Head companies and subsidiary members of groups
Column 1                                         Column 2                                                                                                                                                                            Column 3                                                                                     Column 4
Entity's role in relation to group               Income tax treatment requirements                                                                                                                                                   Australian residence requirements                                                            Ownership requirements
 1 Head company                                  The entity must be a company (but not one covered by section 703‑20) that has all or