Simplified imputation: non share equity interest and inter-corporate dividend rebate
In this fact sheet you will find an explanation of the legislative amendments made to:
- remove the inter-corporate dividend rebate for unfranked dividends paid within wholly-owned corporate groups generally after 30 June 2003, and
- replicate provisions in the former imputation system in relation to distributions on non-share equity interests.
This fact sheet also contains links to other fact sheets in the series on imputation.
- 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 inter-corporate dividend rebate for unfranked distributions will continue to be available for unfranked distributions paid within a wholly-owned group. This rebate will be turned off after 30 June 2003 for most company groups. There are some transitional rules for company groups that have substituted accounting periods.
- The former imputation provisions relating to distributions on non-share equity interests will be replicated for the purposes of the simplified imputation system. The rules will make certain distributions on non-share equity interests unfrankable.
Status and changes
This fact sheet replaces a previous fact sheet published on September 2002.