Commonwealth Consolidated Acts Commonwealth Consolidated Acts
Income Tax Assessment Act 1936
1 Paragraph 45ZB(6)(d)
After "if the company's average rate of tax is", insert "not".
2 Subsections 160APHH(6) and (7)
Repeal the subsections, substitute:
Shares held by a bare trustee for a sole beneficiary
(6) If:
(a) a person (the trustee ) holds shares in trust for another person (the beneficiary ); and
(b) the beneficiary:
(i) is the sole beneficiary of the trust; and
(ii) is absolutely entitled under the trust to the shares;
the following provisions have effect:
(c) this Division applies as if:
(i) the shares were held by the beneficiary and not by the trustee; and
(ii) the acts of the trustee in relation to the shares were acts of the beneficiary;
(d) if the shares were acquired by the trustee as a result of a disposal by the beneficiary, that acquisition and disposal are to be disregarded;
(e) if the shares are subsequently acquired by the beneficiary as a result of a disposal by the trustee, that acquisition and disposal are to be disregarded.
What happens if paragraph ( 6)(b) ceases to apply to beneficiary
(7) If paragraph ( 6)(b) ceases to apply to the beneficiary, then, after the time when it so ceases to apply (the relevant time ):
(a) if the trust has become a widely held trust:
(i) the shares are taken to have been disposed of by the beneficiary to the trustee at the relevant time; and
(ii) the beneficiary is taken to have acquired the beneficiary's interest in the shares immediately after the disposal; or
(b) in any other case--this Division applies to the beneficiary and the trustee as if subsection ( 6) had never applied;
and the respective positions of the beneficiary and the trustee in relation to the shares or interest are to be determined accordingly.
3 Application of item 2
Despite the amendment made by item 2, a taxpayer who was entitled to a franking credit or a franking rebate in respect of a dividend paid, or a distribution made, before the day on which this Act receives the Royal Assent continues to be entitled to the franking credit or franking rebate.
4 Subsection 160APHR(8)
After "shares", insert "to which the election applies which are".
5 Subsection 160APHU(1)
After "Subdivision", insert "(except subsection 160APHH(6))".
6 At the end of section 160AQTB
Add:
Certain natural persons entitled to franking rebate in respect of exempted dividend
(4) If:
(a) a company other than a former exempting company became an exempting company; and
(b) immediately before the company became an exempting company all the accountable shares and accountable interests in the company were beneficially owned (whether directly or indirectly) by natural persons who were residents; and
(c) the company became an exempting company because some or all of the persons mentioned in paragraph ( b) became non - residents; and
(d) the company becomes a former exempting company because all of the persons mentioned in paragraph ( b) are or have become residents; and
(e) an amount attributable to a class A exempted dividend or a class C exempted dividend paid by the company is included in the assessable income of such a person; and
(f) all the accountable shares and accountable interests in the company were, throughout the period beginning when the company became an exempting company and ending when the amount was received by the person, beneficially owned (directly or indirectly) by persons mentioned in paragraph ( b);
subsection 160AQT(1) or (1AB), or section 160AQX or 160AQZ, apply in relation to the person as if the amount were a class A franked dividend or a class C franked dividend, or a class A flow - on franking amount or a class C flow - on franking amount in relation to the relevant trust amount or partnership amount, and the class A exempted amount or class C exempted amount were a class A franked amount or a class C franked amount, as the case requires.
7 At the end of section 160AQZF
Add:
(6) If the sum of the rebates of tax to which the electing taxpayer is entitled under this Part in respect of dividends paid during the year of income exceeds the ceiling amount in relation to the fund in relation to the year of income, the excess is allowable as a deduction from the electing taxpayer's assessable income of the year of income.
Taxation Laws Amendment Act (No. 3) 1998
8 Paragraph 26(3)(b) of Schedule 7
Repeal the paragraph, substitute:
(b) any distributions made after that time that related to:
(i) dividends paid by a listed public company; or
(ii) dividends declared by a listed public company before that time.