• E Australian franking credits from a New Zealand company

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    In 2003, rules were enacted to allow New Zealand companies to join the Australian imputation system. From 1 October 2003, dividends paid by New Zealand resident companies that have chosen to join the Australian imputation system may also carry franking credits.

    Did the fund receive assessable franked distributions from a New Zealand franking company directly, or indirectly through a partnership or trust?

    No

    Go to F Transfers from foreign funds

    Yes

    Show at E the amount of Australian franking credits attached to the distributions that are included in assessable income adjusted as follows.

    To work out whether the distribution is assessable, see the Foreign income return form guide.

    You must reduce the Australian franking credits that the fund received directly or indirectly from a New Zealand company by:

    • the amount of a supplementary dividend, or
    • the fund's share of a supplementary dividend

    if:

    • the supplementary dividend is paid in connection with the franked dividend, and
    • the fund is entitled to a foreign income tax offset because of the franked dividend or because the franked dividend's inclusion in the fund's assessable income.

    Show the amount of Australian franking credits included in assessable income at

    • C2 Credit: rebates and tax offsets item 12, if the fund is a non-complying superannuation fund, or
    • F4 Credit: refundable franking credits item 12, if the fund is a complying superannuation fund or PST.
    Attention

    A dividend from a New Zealand franking company may also carry New Zealand imputation credits. An Australian resident cannot claim New Zealand imputation credits.

    End of attention
    Last modified: 25 Nov 2009QC 21714