• Notification: head company ineligible – group ceases to exist

    A head company of a consolidated group will no longer be eligible if it:

    • ceases to be an Australian resident company
    • becomes a wholly owned subsidiary of another entity which is a member of an income tax consolidated group
    • becomes a wholly owned subsidiary of another entity which is eligible to form an income tax consolidated group
    • is no longer subject to the general company tax rate in respect of at least some of its taxable income.

    When the head company is no longer eligible, the consolidated group ceases to exist. The former head company, or the public officer of the former head company if the company ceases to exist, must notify us within 28 days of the head company becoming ineligible.

    Where the consolidated group ceases to exist before we are notified about its formation, this notice must be given by the time the income tax return is lodged for the year in which the choice to form the group is made.

    How to notify us

    To notify us that the head company has become ineligible, download and complete Notification of head company no longer eligible: income tax consolidated group ceases to exist (NAT 6783, PDF, 284KB).

    Note:

    • Do not use this form for multiple entry consolidated (MEC) groups.

    A head company does not become ineligible if:

    • All subsidiary members exit a consolidated group. The head company alone will still be a consolidated group. The income tax lodgment obligations will remain the same until the head company itself becomes ineligible.
    • It goes into liquidation. A head company in liquidation remains eligible until it is deregistered. You should only notify us that the head company has become ineligible once it has been deregistered.
      Last modified: 22 Sep 2015QC 27163