New Business Tax System (Consolidation, Value Shifting, Demergers and Other Measures) Act 2002 (90 of 2002)

Schedule 13   Exempting entities and former exempting entities

Income Tax Assessment Act 1997

6   At the end of section 204-30

Add:

(9) A*member of an entity derives a greater benefit from franking credits than another member of the entity if any of the following circumstances exist in relation to the first member in the income year in which the*distribution giving rise to the benefit is made, and not in relation to the other member:

(a) a*franking credit arises for the first member under item 5, 6 or 7 of the table in section 208-130 (distributions by*exempting entities to exempting entities);

(b) a franking credit or*exempting credit arises for the first member because the distribution is*franked with an exempting credit;

(c) the first member is entitled to a*tax offset because:

(i) the distribution is a*franked distribution made by an exempting entity; or

(ii) the distribution is*franked with an exempting credit.