Ian Farmer, PwC

The Australian government has announced significant changes to the way the tax consolidation rules work for company groups. The latest measures operate to wind back the rights to future income (RTFI) and residual asset tax cost setting rules introduced by the same government only 18 months ago.

The changes impact groups of companies that elected to apply the tax consolidation rules, and particularly those groups who have acquired or merged with other companies since July 1 2002.

The RTFI and residual tax...