The anti-streaming and the 45 day rule

Published on 07 May 99 by NEW SOUTH WALES DIVISION, THE TAX INSTITUTE

In the 1997 Budget the Government announced changes that would be made to the treatment of franked dividends and to the dealing in shares generally.These changes fall into three broad categories. The new rules generally will apply to dividends paid on or after 13 May 1997. The holding period rule applies to shares and interest in shares which were acquired from 1 July 1997 unless the shareholder was contractually bound before 13 May 1997. The related payments rule generally applies to arrangements entered into after 13 May 1997. There are special rules that apply to beneficiaries of trusts. It is these latter rules that probably provide the most difficult concepts in this new area. The author expands and provides an overview of these changes.

Author profile

Ross SELLER

Ross has qualifications both as a Solicitor and a Chartered Accountant and has practised in both professions advising on taxation and commercial matters. He heads up the Taxation and Superannuation practice of Gadens Lawyers in Sydney. This practice covers all aspects of revenue law both in Australia and overseas.

Current at 9 December 2003

More by Ross SELLER

• A Comparison of Structures - Partnerships seminar paper - 08-May-2003
• Entity taxation: choosing a structure post Ralph - 21-March-2000
• Trust losses - 22-May-1997

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