Document ID: chunk:federal_register_of_legislation:C2024C00267:section:4:p2
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 4 (pt 2/64)
Character Range: 708833–711570

the ownership time each membership interest covered by subsection (4).
 (4) A membership interest is covered by this subsection if it was beneficially owned at the ownership time by any entity that became an eligible tier‑1 company of the group at the formation time.

719‑30  Employee share schemes
  Despite the amendment of section 719‑30 of the Income Tax Assessment Act 1997 made by Schedule 1 to the Tax Laws Amendment (2009 Budget Measures No. 2) Act 2009, subsection (2) of that section continues to apply, from the commencement of that Schedule, to each share and membership interest that it applied to just before that commencement.

Subdivision 719‑C—Cost setting

Table of sections

719‑160 Transitional cost setting rules on joining have effect with modifications
719‑161 Modified effect of section 701‑1
719‑163 Modified effect of section 701‑35
719‑165 Modified effect of paragraph 701‑45(1)(b)

719‑160  Transitional cost setting rules on joining have effect with modifications
 (1) Section 719‑160 of the Income Tax Assessment Act 1997 has effect in relation to the provisions of this Act mentioned in subsection (2) in the same way as that section has effect in relation to the provisions mentioned in subsection 719‑160(3) of the Income Tax Assessment Act 1997.
 (2) The provisions are Divisions 701, 701A and 702 of this Act, other than:
 (a) section 701‑5; and
 (b) section 701‑40; and
 (c) section 701‑45.
 (3) However, that effect of section 719‑160 of the Income Tax Assessment Act 1997 is subject to modifications set out in this Division.

719‑161  Modified effect of section 701‑1
 (1) This section applies if a consolidated group mentioned in section 701‑1 of this Act is a MEC group.
 (2) Paragraphs 701‑1(2)(b) and (3)(b) of this Act have effect as if a reference in those paragraphs to the future head company were a reference to any entity that became a member of the group as an eligible tier‑1 company at the time the MEC group came into existence.
 (3) An entity is a transitional entity for the purposes of paragraph 701‑1(3)(b) of this Act if:
 (a) the entity and one or more other entities were members of a potential MEC group as eligible tier‑1 companies, throughout the period:
 (i) beginning just before 1 July 2003; and
 (ii) ending just before a time (the rolldown time) before the MEC group came into existence; and
Note: The other entity (or one of the other entities) could be the future head company.
 (b) the entity satisfied either of these conditions at the rolldown time:
 (i) the entity was a wholly‑owned subsidiary of any of those other entities;
 (ii) the entity would be covered by subparagraph (i), if it were assumed that all of the membership interests that were beneficially