Today the Minister for Revenue and Assistant Treasurer Senator the Hon Helen Coonan announced the Government's intention to modify the operation of the Inter-corporate dividend rebate (ICDR) for unfranked dividends.
Senator Coonan said that the current requirement to access the ICDR, that companies must have been members of the same wholly owned group for the whole year of income in which the dividend was paid, would be replaced with a 12 month holding period rule. This rule will require the company paying the dividend to have been a member of the same wholly owned group for at least 12 months prior to the payment of the dividend for which the ICDR is sought.
Senator Coonan also said that the amendment would "be effective from 1 July 2000 and would assist certain taxpayers who had been adversely affected by the operation of the `whole of year' requirement as well as providing greater flexibility for groups who are currently considering restructures."
Senator Coonan further noted that the amendment would align the ICDR with the tax treatment of wholly owned groups following consolidation.
Legislation giving effect to this press release will be introduced into Parliament as soon as possible.