Consolidation: notification forms and instructions
The head company of a group must notify the ATO of its decision to consolidate (forming a group) by the time it lodges the group's first consolidated income tax return.
The head company must also notify the ATO, within 28 days, when members join or leave the group and when the head company itself is no longer eligible to be a head company (and the group therefore ceases to exist).
Special notification requirements apply to the formation and membership of multiple entry consolidated (MEC) groups.
These instructions will help taxpayers and their advisers to complete the relevant paper notification form or, where available, the relevant online or electronic lodgment service (ELS) screen. They also contain links to the forms (available for download in portable document format (PDF) and online screens).
Forming a group
The head company or its tax agent can notify of the formation of a consolidated group online or by completing and lodging a Notification of formation of an income tax consolidated group form. Alternatively the tax agent can notify of formation when lodging an income tax return via ELS.
Do not use this form for MEC groups.
End of warning
- The head company must notify the ATO of the group's formation by the time it lodges its first consolidated income tax return - or, if a return is not required, by the date it would otherwise be due. For example, notification of a group consolidating on 1 July 2002 must be made by the lodgment date for the 2002-03 income tax return.
- Submitting the notification two or three weeks before the first consolidated income tax return is lodged, while not mandatory, will allow the ATO to update its records for the group and ensure the return is correctly processed.
- Consolidation cannot be reversed - once an effective choice to consolidate is notified the choice to consolidate cannot be revoked and the date of consolidation cannot be changed.