Australia: Legislation concerning off-market share buy-backs and franking credits passes Parliament
The legislation now awaits Royal Assent.
Legislation passes Parliament
Legislation concerning off-market share buy-backs and franking credits passed Parliament on 16 November 2023.
The legislation would:
- Align the income tax treatment between off-market share buy-backs undertaken by listed public companies with on-market share buy-backs, effective 18 November 2022
- Prevent distributions to shareholders funded directly or indirectly by capital raisings from being frankable, effective the day after Royal Assent (although distributions in response to regulatory requirements, directives, or recommendations, such as those from the Australian Prudential Regulation Authority (APRA), will not result in unfrankable distributions)
The legislation now awaits Royal Assent.
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