Consolidation Eligibility tests
The two consolidation eligibility worksheets provided by Tax are:
The first step when deciding to form a consolidated group is to determine which entities are eligible to be part of the consolidated group. In doing this you need to establish which entity is the head company of the consolidated group.
The head company must be an Australian resident company that has some or all of its taxable income taxed at the general company tax rate. A head company also cannot be eligible as a subsidiary member of another consolidated group.
Once the head company has been established, the other group members also need to be determined. A subsidiary member of a consolidated group can be an Australian resident company, partnership or trust. To be a subsidiary the entity must be a wholly owned entity of the head company and/or other established group members.
This worksheet has been provided to assist in determining if an entity is eligible to be a member of a consolidated group.