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11 Consolidation deductions

Instructions for consolidation deductions relating to rights to future income, consumable stores and work in progress.

Published 30 May 2024

Who should complete this item?

Only complete this item if the head company of a consolidated group or a MEC group has claimed in this income year at item 6 Calculation of total profit or loss or item 7 Reconciliation to taxable income or loss, all or part of the tax cost setting amount of:

  • a right to future income that is a work in progress (WIP) amount asset under subsection 701-55(5C) of the ITAA 1997 prospective rules, or
  • consumable stores under subsection 701-55(5D) of the ITAA 1997 prospective rules.

The prospective rule amendments, as made by Tax Laws Amendment (2012 Measures No. 2) Act 2012 Schedule 3 Part 3, apply, for Division 705 and section 701-55 of the ITAA 1997 purposes, to all entities (or more specifically the assets of all entities) that join a consolidated or multiple entry consolidated (MEC) group on or after 31 March 2011 (under the Division 705 entry asset cost setting rules).

F – Prospective rules deductions

Write at item 11 – label F the total amount the company has claimed in 2023–24 under the prospective rules at another label in item 6 Calculation of total profit or loss or item 7 Reconciliation to taxable income or loss for the tax cost setting amount of:

  • a right to future income that is a WIP amount asset under 701-55(5C) (and section 25-95) of the prospective rules
  • consumable stores under 701-55(5D) of the prospective rules.

Continue to: 12 National rental affordability scheme

Return to: Instructions to complete the Company tax return 2024

 

QC101684