Commonwealth Consolidated Acts

INCOME TAX (TRANSITIONAL PROVISIONS) ACT 1997 - SECT 205.1

                   If a company has a franking account under former Part IIIAA of the Income Tax Assessment Act 1936 (the old account ) at the end of 30 June 2002, the old account is closed off and an opening balance is created in the company's franking account under section 205-10 as follows:

                     (a)  any estimated debits in the old account at the end of 30 June 2002 are washed out of the account under section 205-5; and

                     (b)  then:

                              (i)  in the case of a company whose 2001-02 franking year ends on 30 June 2002 under former Part IIIAA of the Income Tax Assessment Act 1936 --the company's franking account balances are converted under section 205-10 to a tax paid basis; and

                             (ii)  in the case of a company whose 2001-02 franking year ends before 30 June 2002 under former Part IIIAA of the Income Tax Assessment Act 1936 --the company's franking account balances are converted under section 205- 15 to a tax paid basis.