Other rules for consolidated groups
A number of rules have been introduced to accommodate consolidated groups. These include:
- the extension of existing anti-avoidance measures that counter franking credit trading, and
- special rules which provide for transfer to the head company of any excess in tax offset arising from a franking deficit tax liability of an entity that becomes a subsidiary member of a consolidated group.
The special franking account rules that apply to consolidated groups are contained in Subdivision 709-A of the Income Tax Assessment Act 1997 (ITAA 1997).
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Detailed information on the treatment of franking credits under consolidation can be found at Consolidation
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