What must the corporate tax entity disclose if it triggers the disclosure rule?

If a corporate tax entity's benchmark franking percentage varies significantly between franking periods, the entity must notify the Commissioner of the following information:

  • the benchmark franking percentage for the current franking period, and
  • the benchmark franking percentage for the last franking period in which a frankable distribution was made.

The notice must be in an approved form. The Franking account tax return has been redesigned so that it is the approved form for the purpose of the disclosure rule. For more information refer to the instruction guide accompanying the Franking account tax return.

The Commissioner may also request the corporate tax entity to provide the following information:

  • reasons for setting the significantly varied benchmark franking percentage
  • the franking percentage for all frankable distributions made in the current and last relevant franking period
  • details of any other benefits given to the entity's members, either by the entity or an associate of the entity, in the period from the beginning of the last relevant franking period to the end of the current franking period
  • whether any of the entity's members have derived, or will derive, a greater benefit from the imputation credits than another member of the entity as a result of the variation in the benchmark franking percentage period, and
  • any other information required by the Commissioner.
    Last modified: 28 Jul 2016QC 16620