19 Mar 14 Simplified imputation system: progress of legislation
The introduction of the simplified imputation system replaced the former imputation provisions that were contained in Part IIIAA of ITAA 1936. The new provisions are contained within Part 3-6 of the ITAA 1997 and took effect from 1 July 2002.
The holding period and related payment rules are yet to be rewritten into the simplified imputation system. The Assistant Treasurer announced in media release number 008/2103, issued on 14 December 2013, that the government does not intend to proceed with further legislation in this area. It was stated that, due to the savings provisions, the rules continue to apply and are effective. In this regard, the rules referenced are the current holding period and related payment rules contained in former Division 1A of the ITAA 1936.
Taxation Determination TD 2007/11 (Income tax: imputation: franked distributions: qualified persons: does an entity have to be a qualified person within the meaning of Division 1A of former Part IIIAA of the Income Tax Assessment Act 1936 to avoid the application of paragraphs 207-145(1)(a) and 207-150(1)(a) of the Income Tax Assessment Act 1997 in respect of a franked distribution made directly or indirectly to the entity on or after 1 July 2002?) deals with the savings provisions
For an ATO summary of all relevant legislation, go here