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FM 31: Eligibility rules
or “Rules for companies joining or staying in a consolidated group”
You could also call this:

“Companies can only be part of one consolidated tax group at a time”

You can’t be part of more than one consolidated group at the same time. If you find yourself in a situation where you might be in multiple consolidated groups, here’s what happens:

If you were part of one group first, you’ll stay in that group. But if you somehow ended up in two or more groups at the exact same time, the Commissioner will decide which group you belong to. The Commissioner will look at all the details of your situation to make this decision.

Remember, a consolidated group is a special way for companies to work together for tax purposes. It’s important to know which group you’re in so you can follow the right tax rules.

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Next up: FM 33: When membership is reduced

or “What happens when a consolidated group loses members”
Next

Part F Recharacterisation of certain transactions
Consolidated groups of companies: Eligibility and restrictions

FM 32Restriction on membership of consolidated groups

  1. A company is not eligible to be in more than 1 consolidated group at a particular time. If circumstances arise in which a company would, apart from this section, be treated at a particular time as in more than 1 consolidated group, then—

  2. the company is treated as in the consolidated group of which it was first part; or
    1. if the company is in 2 or more consolidated groups simultaneously, the Commissioner may specify its consolidated group, having regard to all the circumstances of the case.

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