Changes to the income tax law affecting consolidated groups

On 25 November 2011 the Government announced changes to the income tax law affecting consolidated groups as part of its continued commitment to maintaining the integrity, equity and fairness of the tax system. 

Exposure draft legislation and explanatory material for the proposed amendments is attached.

The proposed consolidation amendments (in Schedule 1 to the exposure draft legislation) modify the consolidation tax cost setting and rights to future income rules to make the tax outcomes for consolidated groups more consistent with the tax outcomes that arise when assets are acquired outside the consolidation regime.

The proposed amendments to the taxation of financial arrangements (TOFA) consolidation interaction and TOFA transitional balancing adjustment provisions (in Schedule 2 to the exposure draft legislation) are designed to ensure that the tax treatment of financial arrangements that are part of the assets and liabilities in a consolidation/joining event is consistent with the TOFA tax timing rules. 

Making a submission

Interested parties are invited to comment on the exposure draft and explanatory material. Please select which type of submission to view details.

Closing date for submissions: Wednesday, 2 May 2012


No submissions are currently available.