INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 15 - Transitional provisions for conversion to 30% rate on 1 July 2001  

SECTION 160AUA   CONVERSION OF ACCOUNT BALANCES ON 1 JULY 2001  

160AUA(1)   [Dealing with company's franking account]  

On 1 July 2001, a company's franking accounts are dealt with as follows:

(a) first:

(i) the company's class C franking account balance (if any) at the start of that day is converted under section 160AUB to reflect the new company tax rate; and

(ii) the company's venture capital sub-account balance (if any) at the start of that day is converted under section 160AUB to reflect the new company tax rate;

(b) then, any other credits and debits that occur on that day are processed.

160AUA(2)   [Balance of franking account]  

For the purposes of this Division, if 1 July 2001 is the first day of a franking year for the company, the balance in a franking account or sub-account of the company at the start of that day includes any credit arising for that account on that day under section 160APL (carry forward of surplus from previous franking year) or 160ASEE (carry forward of venture capital sub-account surplus from previous franking year).

160AUA(3)   [Tax paid at old company rates]  

Section 160AUC tells you how to deal with franking credits and debits that arise on or after 1 July 2001 but reflect tax paid at the old company tax rates.