All eligible members of the group at the date of effect of consolidation must be included in the notification. A choice to consolidate is binding on all eligible members - you may not leave an eligible member out of the group. Therefore, check that the notification contains all eligible members at the date of consolidation regardless of the length of membership in the group.
An entity is a subsidiary member of a consolidatable group if:
- it is a company, trust or partnership
- it is wholly owned, directly or indirectly, by the head company (disregarding up to 1% of ordinary shares that meet certain employee share scheme requirements)
- it is an Australian resident (but not a prescribed dual resident), and
- if the member is a company - it has at least some of its taxable income (if it has any) taxed at the general company tax rate (if it is a company).
Trusts are considered wholly owned only if all beneficiaries are also members of the group. Do not include trusts that distribute to non-group members (including individuals).
Where a trust is a member, show the tax file number (TFN) of the trust as part of its details, not the TFN of the trustee. If the trustee is also a member (for example, a corporate trustee), include its details separately.
Where a partnership is a subsidiary member of a group, show the TFN of the partnership as part of its details, not the TFNs of the partners. The partners will also be members, so their details including TFNs are included separately.