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.



The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.