Treasury Laws Amendment (2020 Measures No. 2) Act 2020 (79 of 2020)

Schedule 1   Hybrid mismatch rules

Part 4   Foreign income tax deductions for regulatory capital

Income Tax Assessment Act 1997

63   Section 207-158

Repeal the section, substitute:

207-158 Distributions entitled to a foreign income tax deduction

(1) This section applies to a *franked distribution if all or part of the distribution gives rise to a *foreign income tax deduction.

Exception for distributions made under certain regulatory capital instruments

(2) However, this section does not apply to a distribution made in respect of an *equity interest if the interest forms part of Additional Tier 1 capital for the purposes of:

(a) applicable *prudential standards; or

(b) applicable prudential standards determined by *APRA and in force under section 32 of the Insurance Act 1973; or

(c) applicable prudential standards determined by APRA and in force under section 230A of the Life Insurance Act 1995.