Document ID: chunk:federal_register_of_legislation:C2025C00029:section:11:p50
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 11 (pt 50/64)
Character Range: 3426535–3429451

member may object to it in the manner set out in Part IVC of the Taxation Administration Act 1953.

Division 203—Benchmark rule

Guide to Division 203

203‑1  What this Division is about
      Distributions within a particular period must all be franked to the same extent.

Table of sections
203‑5 Benchmark rule
203‑10 Benchmark franking percentage

Operative provisions
203‑15 Object
203‑20 Application of the benchmark rule
203‑25 Benchmark rule
203‑30 Setting a benchmark franking percentage
203‑35 Franking percentage
203‑40 Franking periods—where the entity is not a private company
203‑45 Franking period—private companies
203‑50 Consequences of breaching the benchmark rule
203‑55 Commissioner's powers to permit a departure from the benchmark rule

203‑5  Benchmark rule
 (1) A corporate tax entity must frank all frankable distributions made within a particular period at a franking percentage set as the benchmark for that period. This is the benchmark rule.
 (2) The benchmark rule does not apply to some corporate tax entities. Those entities are identified in section 203‑20.

203‑10  Benchmark franking percentage
 (1) The benchmark franking percentage 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.

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 either:
 (a) the company satisfies each of the following criteria:
 (i) at all times during the franking period, the company is a *listed public company;
 (ii) the company cannot make a *distribution on one *membership interest during the franking period without making a distribution under the same resolution on all other membership interests;
 (iii) the company cannot *frank a distribution made on one membership interest during the franking period without franking distributions made on all other membership interests under the same resolution with a *franking credit worked out using the same *franking percentage; or
 (b) the entity is a *100% subsidiary of a company that satisfies the criteria set out in paragraph (a).
 (2) The following are examples of cases in which a company satisfies the criteria set out in paragraph (1)(a):
 (a) the company is a *listed public company with a single *class of *membership interest at all times during the relevant *franking period;
 (b) the company is a listed public company that, under its constituent documents, must not:
 (i) make a *distribution on one membership interest during the relevant franking period without making a