E Australian franking credits from a New Zealand company

Warning:

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

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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?

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 franking 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 the franked dividend is included in the fund’s assessable income.

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

• C2 Rebates and tax offsets item 12 for a non-complying fund
• E1 Complying fund's franking credits tax offset item 12 for a complying fund or PST.

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

If the franking credit is attached to a dividend that is non-arm’s length income of a complying superannuation fund, complying ADF or a PST, the franking credit (along with the dividend) should be shown at U Net non-arm’s length income.