(1) A * franking credit arises in the * franking account of a * corporate tax entity (other than a * life insurance company) if:
(a) an * exploration credit is issued to the entity under Subdivision 418-E during an income year; and
(b) if the entity were not a corporate tax entity, the entity would be entitled to a * tax offset under Subdivision 418-B in relation to the exploration credit.
(2) The amount of the * franking credit is the amount of the * tax offset to which the entity would be entitled under Subdivision 418-B if:
(a) the entity were not a * corporate tax entity; and
(b) no other * exploration credits were issued to the entity during the income year.
(3) The * franking credit arises at the same time the * exploration credit is issued.