When will this apply?

  • A NZ resident company can choose to make a franking choice to allow them to maintain an Australian franking account from 1 April of a particular year. To do this, they must make a franking choice by the end of the income year following the income year which includes 1 April of that year.
  • In later income years, the franking choice will generally be in force from the start of the income year in which the franking choice is made. Unless the Australian Commissioner has previously approved some other accounting period, the start of the income year for the NZ company will be 1 July.
  • A NZ franking company can start to frank a distribution with Australian franking credits one month after it has made the franking choice. For example, a NZ resident company makes a franking choice on 1 October 2012, it can only start to frank a distribution from 1 November 2012 onwards.
    Last modified: 07 Oct 2015QC 16903