INCOME TAX ASSESSMENT ACT 1997
An entity franks a *distribution if:
(a) the entity is a *franking entity that satisfies the *residency requirement when the distribution is made; and
(b) the distribution is a *frankable distribution; and
(c) the entity allocates a *franking credit to the distribution.
Division 205 deals with a corporate tax entity ' s franking account and sets out when credits, known as franking credits, and debits, known as franking debits, arise in that account.
The mechanism by which an entity allocates a franking credit to a distribution (for example, whether it is done by resolution or some other means) is determined by the entity.