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  • Debt and equity rules

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    The debt and equity measures broadly operate to characterise certain interests as either debt or equity. For some tax law purposes, equity interests are treated in the same way as shares, even though they are not shares in legal form. These interests are called 'non-share equity interests'. They include some income securities and some stapled securities.

    Further Information

    An overview of the debt and equity rules and explanation of what constitutes a non-share equity interest is available at Debt and equity tests: guide to the debt and equity tests.

    End of further information

    For the purposes of the imputation system, generally non-share equity interests are treated in the same way as shares that are not debt interests. Non-share dividends on these types of interests may be franked or unfranked. Show any amount of non-share dividend, whether franked or unfranked, or any amount of franking credit attached to the non-share dividend at the appropriate place on the applicable tax return as if it were for a share.

    Last modified: 25 Nov 2009QC 21714