It had been our intention to provide some clarity on the practical implications of the company tax rate cuts, including the impact on franking credits, but there has been so much uncertainty about how these cuts are to be implemented that we had to keep putting this issue on hold and re-writing it as more information came to hand. Even now the landscape ahead is far from clear, and we've considered numerous theoretical instances over the last few months where the implications for a company would be, at best, difficult to determine. At the very least, most companies that have retained earnings and receive the benefit of the tax cut will be penalised with a hit to their franking account.
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