Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The object of this section is to specify certain entities that cannot be * members of a * consolidated group because of the way their income is treated for income tax purposes.
(2) An entity of a kind specified in an item of the table cannot be a * member of a * consolidated group or a * consolidatable group at a time in an income year if the conditions specified in the item exist:
Certain entities that cannot be members of a consolidated or consolidatable group | ||
Item | An entity of this kind: | Cannot be a member of a consolidated group or consolidatable group if: |
1 | An entity of any kind | At the time, the total * ordinary income and * statutory income of the entity is exempt from income tax under Division 50 |
2 | A company | The company is a recognised medium credit union (as defined in section 6H of the Income Tax Assessment Act 1936 ) for the income year |
3 | A company | The company: (a) is an approved credit union for the income year for the purposes of section 23G of the Income Tax Assessment Act 1936 ; and (b) is not a recognised medium credit union (as defined in section 6H of that Act) or a recognised large credit union (as defined in that section) for the income year |
4 | A company | The company is a * CCIV at any time during the income year |
5 | A company | The company is a * PDF at the end of the income year |
7 | A trust | The trust is: (a) a * complying superannuation entity for the income year; or (b) a * non - complying approved deposit fund or a * non - complying superannuation fund for the income year |
8 | A trust | The trust is a * CCIV sub - fund trust |
Note: A subsidiary of a life insurance company cannot be a member of a consolidated group or consolidatable group in certain circumstances: see section 713 - 510.
(3) Item 8 of the table in subsection (2) of this section has effect despite section 713 - 130 (which enables a public trading trust to form a consolidated group).