The franking period is a concept introduced with the introduction of the simplified imputation system and, together with the benchmark franking percentage, is a key element in the application of the benchmark rule.
The franking period for a corporate tax entity will depend on whether or not the corporate tax entity is a private company.
Broadly, a company is a private company if:
- it does not have its shares listed on an official stock exchange; or
- 20 or fewer persons control 75% or more of either the (i) paid up capital; (ii) voting rights; or (iii) rights to income of the company. For the purposes of this test an individual, their nominees, their relatives and their relatives' nominees are taken to be one person.