Document ID: chunk:federal_register_of_legislation:C2010C00673:body:0:p27
Version: federal_register_of_legislation:C2010C00673
Segment Type: other
Provision Reference: 
Character Range: 64825–67475

component - 15%; and
  (b) in respect of the unregulated investment component -
25%.".
  4. Application
The amendments made by this Part apply to assessments in
respect of income of the 1994-95 year of income and of all
later years of income.
           PART 2 - INCOME TAX ASSESSMENT ACT 1936
  5. Objects
The objects of this Part are:
  (a) to provide for the intercorporate dividend rebate for a
pooled development fund ("PDF") to be calculated by reference
to the rate of tax applicable to the SME income component of
its taxable income; and
  (b) to set out rules for working out the various components
of the taxable income of a PDF; and
  (c) to make certain adjustments to the tax treatment of
capital gains and capital losses of PDFs.
  6. Subsection 46(1):
Insert:
  "'PDF dividend' means a dividend paid to a shareholder that
is a PDF;
  'SME income component' has the same meaning as in Subdivision
B of Division 10E.".
  7. After subsection 46(1):
Insert:
  "(1AAA) This section does not apply to a PDF dividend if the
dividend is paid in respect of an unregulated investment
(within the meaning of the Pooled Development Funds Act
1992).".
  8. Subsection 46(2):
Insert "(other than PDF dividends)" after "dividends" (wherever
occurring).
  9. After subsection 46(2):
Insert:
  "(2A) Subject to this section, if:
  (a) one or more PDF dividends were paid in a year of income
to a shareholder; and
  (b) the shareholder is a resident;
the shareholder is entitled to a rebate in its assessment in
respect of income of the year of income. The amount of the
rebate is obtained by applying the rate of tax payable by the
shareholder in respect of the SME income component of its
taxable income to the part of any PDF dividends that is
included in its taxable income.".
  10. After subsection 46(7):
Insert:
  "(7AA) For the purposes of subsection (2A), the part of any
PDF dividends that is included in the taxable income of a
shareholder of the year of income is:
  (a) if the SME income component of the taxable income is
equal to or less than the amount of the PDF dividends included
in the shareholder's assessable income of the year of income -
the whole of the SME income component of the taxable income; or
  (b) in any other case - so much of the SME income component
of the taxable income as equals the amount (if any) of the PDF
dividends included in the shareholder's assessable income of
the year of income.".
  11. Subsection 46(7A):
Insert "or (2A)" after "(2)" (wherever occurring).
  12. Paragraph 46(7A)(a):
Insert "(other than PDF dividends)" after "dividends" (wherever
occurring).
  13. Subsection 46(7A):
Add at the end: