Franking account

This section covers the following key points:

  • Entries in the franking account are recorded on a tax-paid basis.
  • The franking account will operate on a rolling balance account.
  • The new rules replicate the former rules relating to franking credits and debits and the times at which they arise.
  • Franking deficit tax will be imposed if a franking account is in deficit at the end of the income year or at 30 June for certain late balancing corporate tax entities.
  • Franking deficit tax will continue to be creditable and provide an offset against income tax.
    Last modified: 09 Jul 2014QC 17505