Document ID: chunk:federal_register_of_legislation:C2004A00986:clause:1_160aua
Version: federal_register_of_legislation:C2004A00986
Segment Type: clause
Provision Reference: sch 1 cl 160AUA
Character Range: 25973–27108

160AUA  Conversion of account balances on 1 July 2001

 (1) On 1 July 2001, a company's franking accounts are dealt with as follows:
 (a) first:
 (i) the company's class C franking account balance (if any) at the start of that day is converted under section 160AUB to reflect the new company tax rate; and
 (ii) the company's venture capital sub‑account balance (if any) at the start of that day is converted under section 160AUB to reflect the new company tax rate;
 (b) then, any other credits and debits that occur on that day are processed.

 (2) For the purposes of this Division, if 1 July 2001 is the first day of a franking year for the company, the balance in a franking account or sub‑account of the company at the start of that day includes any credit arising for that account on that day under section 160APL (carry forward of surplus from previous franking year) or 160ASEE (carry forward of venture capital sub‑account surplus from previous franking year).

 (3) Section 160AUC tells you how to deal with franking credits and debits that arise on or after 1 July 2001 but reflect tax paid at the old company tax rates.