New Business Tax System (Consolidation and Other Measures) Act 2003 (16 of 2003)

Schedule 24   Consolidation: pay as you go (PAYG) instalments

Part 2   Amendment of the Income Tax Assessment Act 1997

22   Subsection 995-1(1) (definition of initial head company instalment rate )

Repeal the definition, substitute:

initial head company instalment rate , for a *head company of a *consolidated group, or a *provisional head company of a *MEC group, is an *instalment rate worked out on the basis of:

(a) for a group that comes into existence in an income year under section 703-50 or 719-50 - the first *base assessment of a company as the head company of that group for which the *base year is that income year; and

(b) for a group (the later group ) for which either of the following conditions is satisfied:

(i) the later group is *created from a group (the first group ) that comes into existence under section 703-50 or 719-50;

(ii) starting from the first group, consolidated groups or MEC groups are successively created, ending in the creation of the later group;

the first base assessment of a company as the head company of the first group, the later group or any other group covered by subparagraph (ii), for which the base year is the income year in which the first group comes into existence.

Note: For example, subparagraph (b)(ii) covers a consolidated group that is created from a MEC group, which was in turn created from a consolidated group that came into existence under section 703-50.