Simplified imputation - franking a distribution

About this fact sheet

This fact sheet explains the manner in which a distribution may be franked. Franking a distribution is the way in which a corporate tax entity passes on to a member, credits for tax that it has paid.

It should be noted at this point that the rules applying to private companies are different in some aspects to those applying to other franking entities. The differences and the reasons for them are explained later in the fact sheet.

This fact sheet also contains links to other fact sheets in the series on imputation.

Sections within About this fact sheet

• Key points
• Status and changes
• How does an entity frank a distribution?
• What is a franking entity?
• What distributions can be franked?
• What are unfrankable distributions?
• When must the distribution statement be provided to the recipient?
• What is the amount of franking credit allocated to a distribution?
• How is the maximum franking credit calculated?
• What is the franking percentage?
• What happens if the entity allocates franking credits in excess of the maximum franking credit that may be allocated?
• Can an entity change the amount of franking credit allocated on a distribution?