Document ID: chunk:federal_register_of_legislation:C2004A00975:clause:1_1:p9
Version: federal_register_of_legislation:C2004A00975
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 9/20)
Character Range: 22338–25084

for an entity is set by reference to the franking percentage for the first frankable distribution made by the entity during the relevant period.

 (2) An entity has a benchmark franking percentage, even if it is not subject to the benchmark rule.

[This is the end of the Guide.]

Operative provisions

203‑15  Object

  The object of this Subdivision is to ensure that one *member of a *corporate tax entity is not preferred over another when the entity *franks *distributions.

203‑20  Application of the benchmark rule

 (1) The *benchmark rule does not apply to a company in a *franking period if:
 (a) at all times during the franking period, the company is a *listed public company that, under its constituent documents, must *frank all *distributions made to its *members under a single resolution at the same *franking percentage; and
 (b) any distributions made by the company during the period are made to all members of the company.

 (2) The *benchmark rule does not apply to a company in a *franking period if, at all times during the franking period, the company is a *listed public company with a single *class of *membership interest.

203‑25  Benchmark rule

  An entity must not make a *frankable distribution whose *franking percentage differs from the entity's *benchmark franking percentage for the *franking period in which the distribution is made. This is the benchmark rule.

Note: If a corporate tax entity franks a distribution in breach of this rule, the distribution will still be a franked distribution, although consequences will flow under section 203‑50.

203‑30  Setting a benchmark franking percentage

  The benchmark franking percentage for an entity for a *franking period is the same as the *franking percentage for the first *frankable distribution made by the entity within the period.

Note: If no frankable distribution is made during the period, there is no benchmark franking percentage for the period.

203‑35  Franking percentage

 (1) Subject to subsection (2), the franking percentage for a *frankable distribution is worked out using the formula:

 (2) If the *franking percentage for a *frankable distribution would exceed 100% if it were worked out under subsection (1), it is taken to be 100%.

203‑40  Franking periods—where the entity is not a private company

 (1) Use this section to work out the franking periods for an entity in an income year where the entity is not a *private company for the income year.

 (2) If the entity's income year is a period of 12 months, each of the following is a franking period for the entity in that year:
 (a) the period of 6 months beginning at the start of the entity's income year;
 (b) the remainder of the income year.

 (3) If the entity's