The franking period is a concept introduced by the simplified imputation system to allow corporate tax entities to align the period for determining their franking deficit tax liability with their income year.
A private company's franking period will be the same as its income year.
A corporate tax entity that is a public company will generally have the following franking periods:
- the 6 month period commencing at the start of its income year, and
- the remainder of its income year.
In those limited cases where the public company's income year is longer than 12 months (for example it obtained approval from the Commissioner to adopt a substituted accounting period) it may have up to 3 franking periods for the income year.
Example 1: Franking period for a public company
On 1 October 2002 Black Ltd, a public company, commenced business operations. Under the franking period rules its franking period will be:
- 1st franking period: 1 October 2002 to 31 March 2003
- 2nd franking period: 1 April 2003 to 30 June 2003
For more information on franking periods refer to the fact sheets: