Document ID: chunk:federal_register_of_legislation:C2025C00029:section:5:p16
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 5 (pt 16/20)
Character Range: 3726565–3729386

available frankable profits. The remainder of the dividend is taken to be an unfrankable distribution.
 (3) If:
 (a) a *corporate tax entity pays a *non‑share dividend that is one of a number paid at the same time; and
 (b) immediately before the payment, the amount of the *available frankable profits of the entity, although greater than nil are less than the sum of the amounts of the non‑share dividends;
the entity is taken to have made a frankable distribution equal to the amount worked out using the formula:
The remainder of the dividend is taken to be an unfrankable distribution.

215‑20  Working out the available frankable profits
 (1) Use the following formula to work out the amount of a *corporate tax entity's available frankable profits at a particular time:
where:
committed share dividends means the sum of:
 (a) the amounts of any *distributions that are not *non‑share dividends and are paid by the entity at that time; and
 (b) if the entity has announced that it will pay distributions that are not non‑share dividends at a later time, or is committed or has resolved (formally or informally) to paying such distributions at a later time—the amounts of those distributions.
maximum frankable amount means the maximum amount of *frankable *distributions (other than *non‑share dividends) that the *corporate tax entity could pay at that time having regard to its available profits at that time.
undebited non‑share dividends means the sum of the amounts of the franked parts of the *non‑share dividends (worked out under subsection (2)) that:
 (a) were not debited to available profits; and
 (b) were paid within the preceding 2 income years or were paid under the same *scheme under which the entity pays the non‑share dividend.
 (2) The amount of the franked part of a *non‑share dividend is worked out using the following formula:
where:
applicable gross‑up rate means the *corporate tax gross‑up rate of the entity making the distribution for the income year in which the distribution is made.

215‑25  Anticipating available frankable profits
 (1) A *corporate tax entity that pays a *non‑share dividend may anticipate *available frankable profits if:
 (a) the entity:
 (i) has announced the payment of; or
 (ii) is committed or has resolved (formally or informally) to pay;
  *distributions other than non‑share dividends (the committed distributions) after payment of the non‑share dividend; and
 (b) but for this subsection, section 215‑15 would apply to the non‑share dividend; and
 (c) the entity's available frankable profits would be greater than nil at the relevant time if the committed distributions were ignored; and
 (d) it is reasonable to expect that available profits will arise after payment of the non‑share dividend and before payment of the committed distributions; and
 (e)