Converting to an MEC group
An MEC group is a group of Australian entities that is wholly foreign-owned and does not have a common Australian resident head company.
The head company of a consolidated group must notify us if it makes a written choice to convert the consolidated group to a multiple entry consolidated (MEC) group.
The new provisional head company must notify us:
- no later than the date it lodges its income tax return for the income year in which the special conversion event occurs, or
- if a return is not required for that income year, by the date it would have otherwise been due.
We recommend the head company submits the notification 28 days before lodging its income tax return. This will allow us to update our records for the group and ensure the return is processed correctly.
How to notify us
The public officer of the head company of the consolidated group, as listed in the Australian Business Register (ABR), or its registered tax agent must notify us about this conversion by completing a Notification of conversion to a multiple entry consolidated (MEC) group (NAT 7026, PDF 364KB)This link will download a file form.
To help you complete the relevant paper form or online or PLS when notifying us of consolidation, see Notification forms and instructions.
For an explanation of how wholly-owned corporate groups are allowed to operate as a single entity for income tax purposes, see Consolidation.