Consolidation amendments in Schedule 1

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.