Franked distributions and capital raising

This consultation process has now been completed. Submissions available
Date
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Consultation Type
Exposure Draft Legislation

Key Documents

As part of the 2016‑17 Mid‑Year Economic and Fiscal Outlook, an integrity measure was announced to prevent the distribution of franking credits where a distribution to shareholders is funded by particular capital raising activities.

The Government has prepared exposure draft legislation giving effect to this measure, which will prevent companies from attaching franking credits to distributions to shareholders made outside or additional to the company's normal dividend cycle, to the extent the distributions are funded directly or indirectly by capital raising activities that result in the issue of new equity interests.

The Government is seeking stakeholders’ views on the exposure draft legislation and accompanying explanatory material implementing this measure.

Submissions

1918 submissions were received for this consultation, including 80 confidential submissions.