Completing the consolidated groups losses schedule
You complete the Consolidated groups losses schedule 2024 (NAT 7888), as the head company of a consolidated group.
This publication is not a guide to income tax law. If you feel this publication doesn't fully cover your circumstances, contact us or a recognised tax adviser.
The head company of a consolidated group or multiple entry consolidated (MEC) group that satisfies any one or more of a series of tests, must complete the Consolidated groups losses schedule 2024. Check the tests, Who must complete a Consolidated groups losses schedule?
When we refer to you or your business in these instructions, we are referring to either:
- you as a business entity (for example, a company) that conducts a business
- you as the tax agent or public officer responsible for completing the schedule.
Who must complete a consolidated groups losses schedule?
A head company of a consolidated group or multiple entry consolidated (MEC) group must complete the schedule and lodge it with the Company tax return 2024, if any of the following tests apply:
- The total of the group's tax losses and net capital losses carried forward to later income years is greater than $100,000.
- The total of its tax losses and net capital losses transferred from joining entities is greater than $100,000.
- The total of its tax losses deducted and net capital losses applied is greater than $100,000.
- It has an interest in a controlled foreign company (CFC) that has current year losses greater than $100,000.
- It has an interest in a CFC that has deducted or carried forward a loss to later income years greater than $100,000.
- It is a life insurance company, or is treated as a life insurance company under Subdivision 713-L of the ITAA 1997, and has a total of complying superannuation class tax losses and net capital losses carried forward to later income years greater than $100,000 (complete part D of the schedule).
The examples provided in these instructions are for illustration purposes only and may use lower figures, for simplicity.
A head company may need to complete the schedule for certain aspects of its net capital losses. Some of the information requested in this schedule is also requested in the Capital gains tax schedule and instructions 2024 (NAT 3423). A head company that completes a consolidated groups losses schedule may also need to complete a CGT schedule.
If the head company completes this schedule for any aspect of its losses, it must complete all relevant parts of the schedule. For example, if a head company completes the schedule as a result of having tax losses and net capital losses carried forward to later income years greater than $100,000, it must also provide details of controlled foreign company (CFC) losses, even if the total of these losses is less than $100,000.
These instructions are based on the losses provisions, including those relating to consolidated groups contained in Division 707 of the Income Tax Assessment Act 1997 (ITAA 1997) and modifications to those provisions in relation to MEC groups contained in Division 719 of the ITAA 1997.
Continue to: What’s new for consolidated groups losses?