Off-market share buy-backs and selective share cancellations
The Treasury Laws Amendment (2023 Measures No. 1) Act 2023External Link made changes to align the tax treatment of off-market share buy-backs undertaken by listed public companies with the treatment of on-market share buy-backs. It also made changes in respect of selective share cancellations to ensure alignment of tax treatment across capital management activities for listed public companies.
A listed public company that undertakes an off-market share buy-back or selective share cancellation may be required to debit the balance of its franking account.
These changes are retrospective. They apply to off-market share buy-backs announced and undertaken by a listed public company after 7:30 pm AEDT on 25 October 2022, and to selective share cancellations announced and undertaken by a listed public company on or after 18 November 2022.
Further information is available at Improving the integrity of off-market share buy-backs.
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