INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 15 - Transitional provisions for conversion to 30% rate on 1 July 2001  

SECTION 160AUG   MODIFYING THE OPERATION OF SUBSECTION 160AQE(3)  

160AUG(1)   When this section applies.  

This section deals with the situation in which:

(a) subsection 160AQE(3) is applied to work out the provisional required franking amount for a dividend (the current dividend ) paid on or after 1 July 2001; and

(b) the earlier franked dividend referred to in that subsection was paid before 1 July 2001.

160AUG(2)   Effect on required franking amount.  

The component EFA in the formula in subsection 160AQE(3) is worked out using the following formula:

Class C franked amount   ×

34 66

×

70 30

where:

class C franked amount
is the amount that is the class C franked amount of the earlier dividend.