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INCOME TAX ASSESSMENT ACT 1936 (ARCHIVE)

PART IIIAA - FRANKING OF DIVIDENDS  

Division 7 - Dividends paid to trusts and partnerships  

Subdivision BA - Maximum franking credits, maximum franking rebates, and maximum potential rebate amounts (and allowable deductions), for taxpayers who elect under section 160APHR  

SECTION 160AQZH  BENCHMARK PORTFOLIO OF SHARES  

160AQZH(1)  [Applicable portfolio]  


The benchmark portfolio of shares that is applicable in respect of a fund managed by or on behalf of a taxpayer is the portfolio of the shares and other securities used to calculate:


(a) the All Ordinaries Index published by the Australian Stock Exchange Limited; or


(b) if the regulations prescribe another index in relation to a class of taxpayers in which the taxpayer is included - the other index;

being a portfolio whose value is equal to the net equity exposure of the fund for the year of income.

160AQZH(2)  [``net equity exposure'']  


The net equity exposure of a fund for the year of income is the average of the values calculated for each relevant week during the year of income of the long and short positions that the fund has in such of the shares, or in interests in such of the shares, included in the fund as:


(a) are shares:


(i) in companies that are residents of Australia; and

(ii) that are included in the relevant index; or


(b) if the relevant index is the index referred to in paragraph (1)(a) - are ordinary shares:


(i) in companies that are residents of Australia; and

(ii) that are listed for quotation in the official list of Australian Stock Exchange Limited.

160AQZH(3)  [Value of position in share or interest]  


The value of a position in a share, or a position in an interest in a share, is calculated by multiplying the value of the share or interest by the delta of the position in the share or interest.

160AQZH(4)  [Calculation of values]  


The values calculated for each relevant week as mentioned in subsection (2) are to be calculated on the same day each week (being the day chosen for the first calculation) or, if another basis for calculating those values is prescribed by the regulations, are to be calculated on that other basis.

160AQZH(5)  [Relevant week]  


A relevant week referred to in subsection (2) is each week during the year of income other than:


(a) if the first acquisition of shares or interests in shares that are managed by or on behalf of the electing taxpayer as or in a particular discrete fund occurred during the year of income - a week occurring before the week in which the acquisition occurred; and


(b) if all the shares or interests in shares that are managed by or on behalf of the electing taxpayer as or in a particular discrete fund were disposed of during the year of income - a week occurring after the week in which the last disposal of shares or interests occurred.


 



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