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  • K Franked dividend amount

    Was the SMSF paid franked dividends, including franked non-share dividends?

    No

    Leave K blank. Go to L.

    Yes

    Read on.

    Write at K the total amount of franked dividends, and franked non-share dividends, that were paid to the SMSF. The amount at K should not be reduced by any loss or outgoing related to the income.

    If you include an amount at K that is exempt current pension income, also include it at Y Exempt current pension income.

    Do not include:

    • franking credits (include these at L Dividend franking credit)
    • franked dividends that are a share of net income from a trust (include these at M Gross trust distributions)
    • franked dividends that are part of a distribution from a partnership (include these at I Gross distribution from partnerships)
    • franked dividends that are part of a distribution from a pooled development fund (unless you have elected to include the franked dividends in the SMSF's assessable income)
    • franked dividends from a New Zealand franking company (include these at D1 Gross foreign income)
    • franked dividends on which family trust distribution tax has been paid
    • franked dividends that are non-arm's-length income of a complying SMSF (include these at U1 Net non-arm's length private company dividends).

    L Dividend franking credit

    Were franking credits attached to dividends paid to the SMSF for which it is entitled to a franking credits tax offset?

    No

    Leave L blank. Go to M.

    Yes

    Read on.

    Write at L the total amount of the franking credits:

    In addition to including a franking credit at L, you must also include it at either:

    • E1 Complying fund’s franking credits tax offset in Section D if the SMSF is a complying fund
    • C2 Rebates and tax offsets in Section D if the SMSF is a non-complying fund.

    If you include an amount at L that is exempt current pension income, also include it at Y Exempt current pension income.

    The amount at L should not be reduced by any loss or outgoing related to the income.

    Do not include:

    • the dividend that the franking credit is attached to (include it at K Franked dividend amount)
    • franking credits where the SMSF is not entitled to a franking credits tax offset (do not include these anywhere on the SMSF annual return)
    • franking credits that are part of a share of net income from a trust (include these at M Gross trust distributions)
    • franking credits that are part of a distribution from a partnership (include these at I Gross distribution from partnerships)
    • Australian franking credits from a New Zealand franking company (include these at E Australian franking credits from a New Zealand company)
    • franking credits that are part of a distribution from a pooled development fund (unless you have elected to include franked dividends and thus the franking credits in the SMSF's assessable income)
    • franking credits on which family trust distribution tax has been paid
    • franking credits attached to a dividend that is non-arm's-length income of a complying SMSF (include these at U1 Net non-arm's length private company dividends).
    Last modified: 19 Feb 2018QC 51269