Distributions on non-share equity interests

The following distributions on non-share equity interests will be made unfrankable:

  • distributions made in respect of certain non-share equity interests that are hybrid instruments issued by Australian authorised deposit-taking institutions for the purposes of the Banking Act 1959. These distributions were specifically made unfrankable under the old imputation system, and
  • distributions made in respect of non-share equity interests and the distribution is attributable to non-profit sources. That is, a company cannot frank a non-share distribution unless it has available profits.

Both of these rules replicate imputation rules from the former imputation system that were repealed from 1 July 2002.

    Last modified: 02 Aug 2016QC 16689