Income Tax Assessment Act 1997

CHAPTER 3 - SPECIALIST LIABILITY RULES  

PART 3-6 - THE IMPUTATION SYSTEM  

Division 210 - Venture capital franking  

Guide to Division 210  

SECTION 210-20   Limits on venture capital franking  

210-20(1)    
The venture capital credit on a distribution cannot exceed the franking credit on the distribution. It is, in this sense, a species of franking credit.

210-20(2)    
A PDF can only distribute venture capital credits if it does it so that all members of the PDF receive venture capital credits in proportion to their holdings.

210-20(3)    
If a PDF has a venture capital surplus when it makes a distribution, it must frank the distribution with venture capital credits.

210-20(4)    
There are measures to ensure that a PDF does not maintain a venture capital deficit over a prolonged period.