Checklist for users of the system

Before franking a distribution:

  • Did you convert your franking account to a tax paid basis on 1 July 2002?
  • Have you ensured you satisfy the Australian residency requirements prior to franking a distribution?
  • Have you a written record of the decision to issue franked dividends?
  • Have you set your benchmark franking percentage for the franking period?
  • If this is a subsequent frankable distribution, have you franked at the benchmark rate for the entire franking period?

Before finalising your franking account:

  • Have you issued a distribution statement?
  • Does the distribution statement meet the legislated requirements?
  • Are you liable to pay franking deficit tax?
  • Have you under-franked or over-franked the distribution?
  • Have you breached the benchmark rule?
  • Do you need to lodge a franking account tax return?

Before lodging a franking account tax return:

  • Are you lodging using the Tax Office-approved franking account tax return?
  • If you have a franking deficit tax liability, and are paying by mail, have you attached a cheque for this amount to your return?
    Last modified: 09 Jul 2014QC 17505