Document ID: chunk:federal_register_of_legislation:C2025C00029:section:4:p21
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 4 (pt 21/34)
Character Range: 3576700–3579419

or more of the following:
 (a) fungible with, or economically equivalent to, the washed interest;
 (b) a membership interest in the same *corporate tax entity as the washed interest and of a class that is the same as, or not materially different from, the washed interest;
 (c) a membership interest in the same corporate tax entity as the washed interest and of a class that is exchangeable at a fixed rate for an interest of the same class as the washed interest;
 (d) a membership interest in another corporate tax entity that holds predominantly membership interests that are covered by any of the preceding paragraphs;
 (e) a membership interest in another corporate tax entity that is exchangeable at a fixed rate for interests that are covered by any one or more of paragraphs (a) to (c).

Exception for individuals who are small holders
 (4) Despite subsection (1), this section does not apply to a *franked distribution made to an individual in an income year if the sum of the *tax offsets to which the individual would be entitled, worked out on the basis mentioned in subsection (5), is $5000 or less.
 (5) Work out the sum of the *tax offsets:
 (a) disregarding this Subdivision, to the extent it applies to the individual; and
 (b) not disregarding this Subdivision, to the extent it applies to any other entity through which a *franked distribution *flows indirectly to the individual.

207‑158  Distributions entitled to a foreign income tax deduction
 (1) This section applies to a *franked distribution if all or part of the distribution gives rise to a *foreign income tax deduction.

Exception for distributions made under certain regulatory capital instruments
 (2) However, this section does not apply to a distribution made in respect of an *equity interest if the interest forms part of Additional Tier 1 capital for the purposes of:
 (a) applicable *prudential standards; or
 (b) applicable prudential standards determined by *APRA and in force under section 32 of the Insurance Act 1973; or
 (c) applicable prudential standards determined by APRA and in force under section 230A of the Life Insurance Act 1995.

207‑159  Distributions funded by capital raising
 (1) This subsection applies to a distribution (the relevant distribution) of a kind, or a part (the relevant part) of a distribution (also a relevant distribution) of a kind, made by an entity if all of the following conditions are satisfied:
 (a) either:
 (i) the entity has a practice of making distributions of that kind on a regular basis and the relevant distribution is not made in accordance with that practice; or
 (ii) the entity does not have a practice of making distributions of that kind on a regular basis;
 (b) there