Document ID: chunk:federal_register_of_legislation:C2025C00029:section:11:p51
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 11 (pt 51/64)
Character Range: 3429193–3431963

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 distribution under the same resolution on all other membership interests; or
 (ii) *frank a distribution made on one membership interest during the relevant 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;
 (c) the company is a listed public company with more than one class of membership interest, but the rights in relation to distributions and the franking of distributions are the same for each class of membership interest.
This is not an exhaustive list.
 (3) For the purposes of subsection (1), ignore *membership interests that do not carry a right to receive *distributions (other than distributions on the winding up of the company).

203‑25  Benchmark rule
  An entity must not make a *frankable distribution whose *franking percentage differs from the entity's *benchmark franking percentage for the *franking period in which the distribution is made. This is the benchmark rule.
Note: If a corporate tax entity franks a distribution in breach of this rule, the distribution will still be a franked distribution, although consequences will flow under section 203‑50.

203‑30  Setting a benchmark franking percentage
  The benchmark franking percentage for an entity for a *franking period is the same as the *franking percentage for the first *frankable distribution made by the entity within the period.
Note: If no frankable distribution is made during the period, there is no benchmark franking percentage for the period.

203‑35  Franking percentage
 (1) Subject to subsection (2), the franking percentage for a *frankable distribution is worked out using the formula:
 (2) If the *franking percentage for a *frankable distribution would exceed 100% if it were worked out under subsection (1), it is taken to be 100%.

203‑40  Franking periods—where the entity is not a private company
 (1) Use this section to work out the franking periods for an entity in an income year where the entity is not a *private company for the income year.
 (2) If the entity's income year is a period of 12 months, each of the following is a franking period for the entity in that year:
 (a) the period of 6 months beginning at the start of the entity's income year;
 (b) the remainder of the income year.
 (3) If the entity's income year is a period of 6 months or less, the franking period for the entity in that year is the same as the income year.
 (4) If the entity's income