Federal Register of Legislation - Australian Government

Primary content

A Bill for an Act to impose franking deficit tax, and for related purposes
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Introduced HR 30 May 2002

New Business Tax System (Franking Deficit Tax) Bill 2002
First Reading

2002

The Parliament of the

Commonwealth of Australia

HOUSE OF REPRESENTATIVES

Presented and read a first time

New Business Tax System (Franking Deficit Tax) Bill 2002

No. , 2002

(Treasury)

A Bill for an Act to impose franking deficit tax, and for related purposes

Contents

1       Short title 1

2       Commencement 1

3       Definitions 2

4       Imposition of tax 2

5       Amount of tax 2

A Bill for an Act to impose franking deficit tax, and for related purposes

The Parliament of Australia enacts:

1 Short title

        This Act may be cited as the New Business Tax System (Franking Deficit Tax) Act 2002.

2 Commencement

        This Act commences on the day on which it receives the Royal Assent.

3 Definitions

        In this Act:

corporate tax entity has the same meaning as in the Income Tax Assessment Act 1997.

franking account has the same meaning as in the Income Tax Assessment Act 1997.

franking credit has the same meaning as in the Income Tax Assessment Act 1997.

franking deficit has the same meaning as in the Income Tax Assessment Act 1997.

franking deficit tax means franking deficit tax payable under section 205-45 of the Income Tax Assessment Act 1997.

franking entity has the same meaning as in the Income Tax Assessment Act 1997.

income year has the same meaning as in the Income Tax Assessment Tax 1997.

4 Imposition of tax

        Franking deficit tax is imposed.

5 Amount of tax

        The amount of franking deficit tax is equal to:

       (a) in a case where a corporate tax entity is liable to pay franking deficit tax because the entity has a franking deficit at the end of an income year--the amount of the entity's franking deficit at the end of the income year; and

       (b) in a case where a corporate tax entity is liable to pay franking deficit tax because the entity has a franking deficit immediately before it ceases to be a franking entity--the amount of the entity's franking deficit immediately before it ceases to be a franking entity.