New Business Tax System (Consolidation and Other Measures) Act (No. 1) 2002 (117 of 2002)
Schedule 16 Application of sections 46 and 46A of the Income Tax Assessment Act 1936 after 30 June 2002
Income Tax Assessment Act 1936
1 After section 45ZB
Insert:
46AA Sections 46 and 46A do not apply to the franked part of dividends paid after 30 June 2002
(1) Sections 46 and 46A do not apply to the franked part of a dividendpaid to a taxpayer after 30 June 2002.
(2) The franked part of a dividend paid after 30 June 2002 is that part of the dividend that is equal to the amount worked out using the following formula:
where:
corporate tax rate has the same meaning as in theIncome Tax Assessment Act 1997.
franking credit on the dividend means the amount of the franking credit on the dividend, worked out under Subdivision 202-D of theIncome Tax Assessment Act 1997.
46AB Application of sections 46 and 46A to the unfranked part of dividends
(1) Sections 46 and 46A do not apply to the unfranked part of a dividend paid to a taxpayer after 30 June 2003.
(2) This section does not apply in relation to a taxpayer to which section 46AC applies.
46AC Different application for members of certain groups
(1) This section applies to a taxpayer if:
(a) the taxpayer becomes a member of a consolidated group or MEC group on the day (the consolidation day ) the group comes into existence; and
(b) the consolidation day either is before 1 July 2003 or is both:
(i) the first day of the first income year starting after 30 June 2003 of the group's head company (for a consolidated group) or provisional head company (for a MEC group) on the consolidation day; and
(ii) before 1 July 2004; and
(c) the taxpayer was not a member of a consolidated group or MEC group before the consolidation day.
(2) Sections 46 and 46A do not apply to the unfranked part of a dividend paid to the taxpayer on or after the consolidation day.
(3) In this section:
consolidated group has the same meaning as in theIncome Tax Assessment Act 1997.
head company has the same meaning as in theIncome Tax Assessment Act 1997.
MEC group has the same meaning as in theIncome Tax Assessment Act 1997.
provisional head company has the same meaning as in theIncome Tax Assessment Act 1997.
46AD The unfranked part of the dividend
For the purposes of sections 46AB and 46AC, the unfranked part of a dividend is that part of the dividend that remains after deducting the franked part of the dividend (worked out under subsection 46AA(2)) from the amount of the dividend.
46AE Who is a qualified person for the purposes of subsections 46(2B) and 46A(5B) after 30 June 2002
(1) This section applies to dividends paid after 30 June 2002.
(2) For the purposes of subsections 46(2B) and 46A(5B), a shareholder is taken to be a qualified person in relation to a dividend for the purposes of Division 1A of Part IIIAA of theIncome Tax Assessment Act 1936,if the person would have been a qualified person in relation to the dividend under that Division if that Division applied to the dividend.