Simplified imputation: instructions for an early balancing corporate tax entity to convert its franking account to a tax paid basis

In this fact sheet you will find an explanation of the franking account conversion process for early balancing corporate tax entities.

This fact sheet also contains links to other fact sheets in the series on imputation.

Key points

  • The simplified imputation system took effect from 1 July 2002 and changes the mechanics of the former imputation system but generally achieves the same outcome as the former system.
  • An early balancing corporate tax entity will convert its class C franking account to a tax-paid basis at the end of 30 June 2002.
  • If the early balancing corporate tax entity has a deficit balance in its franking account at the end of 30 June 2002 it will not be subject to any franking deficit tax liability.
  • For more information on franking accounts generally, see Simplified imputation: the franking account.

Status and changes

This fact sheet replaces a previous fact sheet published on September 2002. It is to accommodate changes that have been progressively enacted through various Bills for the simplified imputation system. These various Bills and Explanatory Memorandums are available on the Tax Office website under Legislation.

    Last modified: 09 Aug 2016QC 16692