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  • Consolidation - securitised assets

    On 3 May 2016, the government announced in the 2016–17 Budget that it will extend the application of the securitised asset measure announced in the 2014–15 Budget to all consolidated groups involved in securitisation arrangements/transactions, not just those where the consolidated groups involved are characterised as Authorised Deposit Taking Institutions (ADIs) or ‘financial institutions'.

    This will ensure that the same treatment applies to liabilities arising from securitisation arrangements within both financial and non-financial institutions. These liabilities will be disregarded if the relevant securitised asset is not recognised for tax purposes.

    The original measure is intended to address an anomaly that arises in the consolidation regime due to the asymmetrical treatment of certain assets and liabilities under the tax cost setting rules. It will clarify the law to ensure that accounting liabilities relating to securitised assets held by a subsidiary are disregarded in certain situations where the subsidiary leaves a consolidated group and/or joins a consolidated group. 

    Start Date

    The measure will apply to arrangements that commence on or after 7.30pm on 13 May 2014. The extension of the measure will apply to arrangements that commence on or after 7:30 pm (AEST) on 3 May 2016. Transitional rules will apply to arrangements that commence before this time.

    Legislation and supporting material

    This change is not yet law and is subject to the normal parliamentary process.

    Find out more

      Last modified: 12 May 2016QC 40284