Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p48
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 48/66)
Character Range: 6448133–6450797

circumstances in which the test company would have failed to meet the conditions in section 165‑12 on the relevant assumptions set out in sections 719‑270 and 719‑275.

Business continuity test and change of head company

719‑285  Business continuity test and change of head company
  In working out whether the *business continuity test is satisfied by a company that, after the *test time, became the *head company of a *MEC group that existed before that time, disregard what happened in relation to the company before it became a *member of the group. Section 719‑90 has effect subject to this section.
Note 1: The business continuity test is to be applied on the basis that the company's business at the test time was the business that section 719‑90 treats the company as having carried on at that time, except to the extent that section 719‑90 attributes to the company its actual history before it became a member of the MEC group.
Note 2: Section 719‑90 applies if there is a change in the head company of a MEC group, treating the later head company as if what had happened to the earlier head company had happened to the later head company.

Bundles of losses and their available fractions

719‑300  Application
 (1) Sections 719‑305, 719‑310, 719‑315, 719‑320 and 719‑325 operate only if:
 (a) a company (the ongoing head company) is the *head company of a *MEC group for an income year or a period in an income year; and
 (b) an event (the application event) described in subsection (2) or (3) happens at a time in the income year in relation to the group.
 (2) One application event is that another company (the new tier‑1 member) becomes both a *member of the *MEC group and an *eligible tier‑1 company of the *top company for the group.
 (3) The other application event is that the *MEC group comes into existence as a result of a *special conversion event happening to the *potential MEC group derived from the ongoing head company.
Note: This application event happens only if the ongoing head company was the head company of a consolidated group just before the special conversion event.

Exceptions for events involving subsidiary members of group
 (4) Those sections do not operate because of the event described in subsection (2) if the new tier‑1 member was a *subsidiary member of the *MEC group immediately before the event.
 (5) Those sections do not operate because of the event described in subsection (3) if all the other companies that are described in paragraph 719‑40(1)(c) and are involved in the *special conversion event were *subsidiary members of the *consolidated group just before the event.
 (6) Subsections (4) and (5) have