Income Tax (Transitional Provisions) Act 1997

If a consolidated group came into existence on 1 July 2002:

the group is a transitional group; and

each entity that became a subsidiary member of the group on the day it came into existence is a transitional entity.

If a consolidated group came into existence after 1 July 2002 but before 1 July 2003:

the group is a transitional group if at least one entity that became a subsidiary member of the group on the day the group came into existence is a transitional entity; and

an entity is a transitional entity if:

at no time after 1 July 2002 and before the group came into existence was the entity a wholly‑owned subsidiary of the entity (the future head company) that became the head company of the group; or

at some time during that period, the entity was a wholly‑owned subsidiary of the future head company and it remained such from the earliest time after 1 July 2002 when it was a wholly‑owned subsidiary of the future head company until the group came into existence.

If a consolidated group came into existence during the financial year starting on 1 July 2003:

the group is a transitional group if at least one entity that became a subsidiary member of the group on the day the group came into existence is a transitional entity; and

an entity is a transitional entity if:

just before 1 July 2003, it was a wholly‑owned subsidiary of the future head company; and

it remained such from the earliest time after 1 July 2002 when it was a wholly‑owned subsidiary of the future head company until the group came into existence.