Clarification of liability provisions for consolidated groups

In the 2010-11 Budget, the government announced new measures that will improve how we calculate and collect income tax from consolidated groups and multiple entry consolidated groups (MEC groups) by:

• clarifying that from 11 May 2010, we can recover unpaid pay as you go (PAYG) liabilities under the liability for payment rules
• clarifying that from 11 May 2010, the 'liability for payment of tax' rules apply to MEC groups
• clarifying that from the 2004-05 income year, a contributing member of a tax sharing agreement that pays its contribution amount under the agreement can leave a consolidated group or MEC group clear from any further liability (where requirements are met)
• ensuring that from 1 July 2002, where there is a change in the provisional head company of a MEC group during an income year, any PAYG instalments paid by the former provisional head company on behalf of the group are attributed to the group.

Media release

Refer to media release number 091/2010 New rules to improve calculation
of income tax liabilities from consolidated groups issued on 11 May 2010 by the Assistant Treasurer.

More information For more information, refer to the following Treasury publication: Discussion paper: Improvements to the calculation and collection of income tax liabilities from consolidated groups.