Document ID: chunk:federal_register_of_legislation:C2010C00605:clause:18_3
Version: federal_register_of_legislation:C2010C00605
Segment Type: clause
Provision Reference: sch 18 cl 3
Character Range: 252470–253495

3                                                                      class C

 (4) If, but for this subsection, the company would have a franking deficit of a particular class under Part IIIAA of the 1936 Act at the end of 30 June 2002 (an original deficit):
 (a) a franking credit equal to the deficit is taken to arise for the company under Part IIIAA of the 1936 Act at the end of 30 June 2002; and
 (b) a franking debit arises on 1 July 2002 in the franking account established under section 205‑10 of the 1997 Act for the company.
The amount of the franking debit is worked out under subsection (5).

 (5) The franking debit generated under paragraph (4)(b) from an original deficit of a class specified in column 2 of the following table is worked out using the formula in column 3 of the table for that class.

Conversion of 1936 Act franking deficit into 1997 Act franking debit
Item                                                                  Original deficit  Franking debit generated under paragraph (4)(b)