Document ID: chunk:federal_register_of_legislation:C2024C00267:section:8:p48
Version: federal_register_of_legislation:C2024C00267
Segment Type: section
Provision Reference: s 8 (pt 48/48)
Character Range: 346771–348875

30 June 2002 under former Part IIIAA of the Income Tax Assessment Act 1936—the company's franking account balances are converted under section 205‑10 to a tax paid basis; and
 (ii) in the case of a company whose 2001‑02 franking year ends before 30 June 2002 under former Part IIIAA of the Income Tax Assessment Act 1936—the company's franking account balances are converted under section 205‑15 to a tax paid basis.

205‑5  Washing estimated debits out of the franking account before conversion
  If, under former Part IIIAA of the Income Tax Assessment Act 1936, the termination time in relation to an estimated debit of a company would, but for this section, occur after the end of 30 June 2002, it is taken to have occurred at the end of 30 June 2002.
Note: A franking credit of the appropriate class equal to the debit will arise under former section 160APU of that Act at the beginning of 30 June 2002.

205‑10  Converting the franking account balance to a tax paid basis—companies whose 2001‑02 franking year ends on 30 June 2002
 (1) This section applies to companies whose 2001‑02 franking year ends on 30 June 2002 under former Part IIIAA of the Income Tax Assessment Act 1936 (the 1936 Act).
 (2) If the company has a franking surplus of a particular class under former Part IIIAA of the 1936 Act at the end of 30 June 2002:
 (a) no franking credit arises under former section 160APL of that Act because of the surplus; and
 (b) a franking credit arises on 1 July 2002 in the franking account established under section 205‑10 of the Income Tax Assessment Act 1997 (the 1997 Act) for the company.
The amount of the franking credit is worked out under subsection (3).
 (3) The franking credit generated under paragraph (2)(b) from a franking surplus of a class specified in column 2 of the following table is worked out using the formula in column 3 of the table for that class.

Conversion of 1936 Act franking surplus into 1997 Act franking credit
Item                                                                   Franking surplus          Franking credit generated under paragraph (2)(b)