Section 109RC — Income Tax Assessment Act 1936: Dividend may be franked if taken to be paid because of family law obligation

(1) This section applies if a dividend is taken to be paid under this Division because of a family law obligation. (2) Subparagraph 202-45(g)(i) of the Income Tax Assessment Act 1997 does not make the amount of the dividend unfrankable. (3) The dividend can be franked in accordance with Part 3-6 of the Income Tax Assessment Act 1997 only if: (a) the dividend is franked at the private company’s benchmark franking percentage for the franking period in which the dividend is taken to be paid; or (b) if the private company does not have a benchmark franking percentage for the period—the dividend is franked at a franking percentage of 100%. (4) For the purposes of subsection (3), if the recipient of the dividend is not a member of the private company for the purposes of Part 3-6 of the Income Tax Assessment Act 1997, treat that recipient as such a member.