Converting a class A franking account
The conversion involves multiplying the surplus from the class A franking account by 39/61 to arrive at the equivalent tax paid amount.
Example: Conversion of class A franking surplus to tax paid basis
Quality Opals Pty Ltd has a surplus of $6,100 in the class A franking account on 30 June 2002. They have not yet converted to a class C franking account. Quality Opals Pty Ltd will need to convert this amount to a tax paid amount on 1 July 2002. The tax paid amount will be $3,900 ($6,100 x 39/61). ($3,900 being available franking credits).
End of example