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  • Partners who have an amount attributable to a dividend included in their net income or loss from a partnership

    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

    When calculating its net income or loss for tax purposes, a partnership that is paid or credited a franked dividend includes both the amount of the dividend and the imputation credit in its assessable income. This is subject to the partnership satisfying the holding period rule and other rules contained in the provisions dealing with franked dividends.

    If a share of the net income or loss of a partnership shown at item 11 on your 2000 tax return for individuals (supplementary section) is attributable to a franked dividend, you may be entitled to claim a franking rebate, which is your share of the partnership's imputation credit arising from that dividend.

    You are not entitled to a franking rebate if you do not satisfy the holding period rule or related payments rule in relation to your interest in the partnership, or the partnership does not satisfy those rules in relation to the shares.

    If the partnership satisfies the rules in relation to the shares and the small shareholder exemption applies to you, you do not have to satisfy the holding period rule.

    For more information read the section When you are not entitled to claim a franking rebate.

    Example

    Partnership

    Franked dividend

    $640

    Imputation credit-non-cash

    $360

    Net income of partnership

    $1,000

    Individual partner (1/2 share)

    Taxable 1/2 share of net income of the partnership

    $500

    Other income

    $20,000

    Total assessable income

    $20,500

    Gross tax-1999-2000 rates

    $3,020

    Less 1/2 of total franking rebate

    $180

    Net tax

    $2,840

     

    End of example
    Last modified: 23 Dec 2019QC 16138