Commonwealth Numbered Acts

TAXATION LAWS AMENDMENT ACT (No. 3) 1993No. 118, 1993 - SECT 59

59. After section 160APVG of the Principal Act the following section is
inserted in Subdivision B of Division 2 of Part IIIAA: Life assurance
companies-statutory fund component

"160APVH.(1) If, on a particular day, a class B franking debit of a life
assurance company arises under any of the following provisions:

   (a)  subsection 160AQCD(1);

   (b)  subsection 160AQCD(3);

   (c)  subsection 160AQCE(1);

   (d)  subsection 160AQCE(3);

   (e)  section 160AQCJ;

   (f)  section 160AQCK;

   (g)  section 160AQCL; there arises on that day a class A franking credit of
        the company equal to the amount that would have been the amount of
        that class B franking debit if the assumptions set out in subsection
        (2) were made.

"(2) The assumptions are as follows:

   (a)  the assumption that the class B franking debit had been calculated
        using a statutory factor of 0.2 instead of 1.0;

   (b)  the assumption that the class B franking debit had been calculated by
        reference to the special life company tax rate for the year of tax
        concerned instead of by reference to the general company tax rate for
        the year of tax concerned.

"(3) If:

   (a)  on a particular day, a class A franking debit of a company arises
        under subsection 160AQCN(1) because of paragraph (c) of that
        subsection in relation to an amount received as a refund in relation
        to a year of income; and

   (b)  on or after that day, a notice of an original company tax assessment
        for the year of income is served, or deemed to be served, on the
        company; there arises, on the day on which the notice is served or
        deemed to be served, a class A franking credit of the company equal to
        the amount of the class A franking debit.".