Document ID: chunk:federal_register_of_legislation:C2025C00029:section:2:p9
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 2 (pt 9/22)
Character Range: 2166028–2168647

dividends
 (1) You can deduct an amount for a *dividend paid to you by a company (the payment company) if:
 (a) you are:
 (i) an individual, a *complying superannuation entity, a trust or a partnership; or
 (ii) a *life insurance company where the dividend is in respect of *shares that are *complying superannuation assets; and
 (b) when the dividend is paid, either you are an Australian resident or you are an individual who is a foreign resident and carries on business in Australia at or through your permanent establishment in Australia, being a permanent establishment within the meaning of:
 (i) a double tax agreement (as defined in Part X of the Income Tax Assessment Act 1936) that relates to a foreign country and affects the individual; or
 (ii) subsection 6(1) of that Act, if there is no such agreement; and
 (ba) if, when the dividend is paid, you are an individual who is a foreign resident and has in Australia such a permanent establishment—the dividend is attributable to the permanent establishment; and
 (c) all or some part of the dividend is reasonably attributable to a *LIC capital gain made by a *listed investment company; and
 (d) in a case where the LIC capital gain was made by a company other than the payment company—the payment company was a listed investment company when it received a dividend part of which is attributable to the LIC capital gain.
Note: The concession is available for LIC capital gains made directly by a listed investment company, and for LIC capital gains that company receives as a dividend through one or more other listed investment companies.
 (2) The amount you can deduct is:
 (a) 50% of your share of the amount (the attributable part) worked out under subsection (3) if you are an individual, a trust (except a trust that is a *complying superannuation entity) or a partnership; or
 (b) 331/3% of your share of the attributable part if you are a complying superannuation entity or a *life insurance company.
Note 1: The listed investment company will advise you of your share of the attributable part.
Note 2: If a shareholder in a listed investment company is a trust or partnership, a beneficiary of the trust or a partner in the partnership has no share of the attributable part.
 (3) The attributable part is worked out using this formula:
where:
after tax gain is the after tax *LIC capital gain.
Example: A listed investment company (which is not a base rate entity) disposes of a CGT asset for $30,000. The asset had a cost base of $10,000. The capital gain is therefore $20,000. The company applies a capital loss of $10,000 against the gain. Its