Document ID: chunk:federal_register_of_legislation:C2025C00014:section:109rc
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 109RC
Character Range: 963401–964354

109RC  Dividend may be franked if taken to be paid because of family law obligation
 (1) This section applies if a dividend is taken to be paid under this Division because of a family law obligation.
 (2) Subparagraph 202‑45(g)(i) of the Income Tax Assessment Act 1997 does not make the amount of the dividend unfrankable.
 (3) The dividend can be franked in accordance with Part 3‑6 of the Income Tax Assessment Act 1997 only if:
 (a) the dividend is franked at the private company's benchmark franking percentage for the franking period in which the dividend is taken to be paid; or
 (b) if the private company does not have a benchmark franking percentage for the period—the dividend is franked at a franking percentage of 100%.
 (4) For the purposes of subsection (3), if the recipient of the dividend is not a member of the private company for the purposes of Part 3‑6 of the Income Tax Assessment Act 1997, treat that recipient as such a member.