Section 205Income Tax Assessment Act 1997 (Cth)

‑1  What this Division is about

This Division:

• creates a franking account for each entity that is, or has been, a corporate tax entity; and

• identifies when franking credits and debits arise in those accounts and the amount of those credits and debits; and

• identifies when there is a franking surplus or deficit in the account; and

• creates a liability to pay franking deficit tax if the account is in deficit at certain times; and

• creates a tax offset for that liability.

Table of sections

205‑5 Franking accounts, franking deficit tax liabilities and the related tax offset

Operative provisions

205‑10 Each entity that is or has been a corporate tax entity has a franking account

205‑15 Franking credits

205‑20 Paying a PAYG instalment, income tax, diverted profits tax or Australian DMT tax

205‑25 Residency requirement for an event giving rise to a franking credit or franking debit

205‑30 Franking debits

205‑35 Refund of income tax, diverted profits tax or Australian DMT tax

205‑40 Franking surplus and deficit

205‑45 Franking deficit tax

205‑50 Deferring franking deficit

205‑70 Tax offset arising from franking deficit tax liabilities

Sourced from the Federal Register of Legislation at 25 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.

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