Division 1A - Circumstances in which a taxpayer can qualify for a franking credit, a franking rebate or the intercorporate dividend rebate  

Subdivision A - Preliminary  


160APHK(1)   Application.  


(a) the assets of a partnership include, or include an interest in, a share (the relevant share ); and

(b) an amount is included in the partnership's assessable income because of the partnership holding and the whole or a part of that amount (the dividend income ) is:

(i) a dividend; or

(ii) attributable, through one or more interposed trusts or partnerships, to a dividend; and

(c) there is a partnership amount in respect of the partnership in relation to a taxpayer who is a partner in the partnership, being a partnership amount that is wholly or partly attributable to the dividend income;

this section sets out how the taxpayer's interest in the relevant share is to be calculated in determining whether the taxpayer is a qualified person for the purposes of Subdivision B or BA in relation to a dividend paid on the share.


The calculation is not required unless the partnership is a qualified person in relation to the dividend. If the partnership is not a qualified person, no partner in the partnership can receive a franking rebate or franking credit through the partnership.

160APHK(2)   Partnership holding.  

For the purposes of this section, the partnership holding is the share, or the interest in the share, that is included in the assets of the partnership as mentioned in subsection (1).

160APHK(3)   Calculation of interest.  

For the purposes of subsections 160APHG(1) and (2), the taxpayer's interest in the relevant share is the amount worked out by using the formula:

Partnership holding   ×   Partner's share of the dividend income  
        The dividend income


partner's share of the dividend income
means the partnership amount in relation to the partner to the extent to which that amount is attributable to the dividend income.

160APHK(4)   A position held by partnership is to be attributed to a partner to whom the position relates.  

A position, or an appropriate part of a position, of the partnership in relation to the partnership holding is taken to be a position of a partner in a partnership if the position relates to the partner's interest in the relevant share.

160APHK(5)   When a position of partnership relates to a partner.  

Without limiting by implication the circumstances in which a position of the partnership can be regarded as relating to the partner's interest in the relevant share, a position of the partnership relates to that interest if:

(a) the whole or a part of the profit or loss from the position will be distributed to, or deducted from an amount that would otherwise be distributed to, the partner; or

(b) the benefit or detriment of the position will otherwise be wholly or partly passed to the partner.


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