Simplified imputation: franking period rules for early and late balancing corporate tax entities

In this fact sheet you will find an explanation of how the franking period rule is to operate for both early and late balancing corporate tax entities where the franking period straddles 1 July 2002.

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.
  • The franking period is a period during which, under the benchmark rule, all frankable distributions made by a corporate tax entity must be franked to the same extent.
  • Where a franking period of an early or late balancing corporate tax entity would otherwise straddle 1 July 2002, the franking period will be taken to start on 1 July 2002.
  • For more information on franking periods generally, see Simplified imputation: the benchmark and anti-streaming rules.

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 16688