Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3
Character Range: 6058933–6059731

3                                      Subsection 709‑60(2) (about franking surplus) does not apply to the *subsidiary member

Note 1: If the subsidiary's franking account is in deficit, it will be liable for franking deficit tax: see subsection 709‑60(3).
Note 2: The subsidiary's franking account does not operate while it is a member of the group: see section 709‑65.
 (3) Subsection (4) operates if:
 (a) the *head company of a *consolidated group is a *former exempting entity; and
 (b) a *corporate tax entity becomes a *subsidiary member of the group at a time (also the joining time); and
 (c) the entity is a *former exempting entity at the joining time.
 (4) These rules apply to the *consolidated group.

Rules applying to *consolidated group
Item                                   Rule