Refunding excess imputation credits - superannuation funds, approved deposit funds and pooled superannuation trusts
From 1 July 2007 there will be major reforms to simplify the superannuation system. Due to these reforms, the information in this product may change. Updated information about superannuation will be available from this website progressively.
From 1 July 2000, complying superannuation funds, approved deposit funds and pooled superannuation trusts may be entitled to a refund of excess imputation credits.
The refund applies where a fund's total imputation credits attached to dividends paid on or after 1 July 2000 exceed that fund's income tax liability after taking into account any other tax offsets to which the fund is entitled. The amount refunded reflects the amount of any imputation credits left over after applying the credits and any other tax offsets to reduce this liability to nil.
Previously, imputation credits could only be used to offset basic income tax liability. For funds that had excess imputation credits, these credits were disregarded and could not be refunded. The new refund measures have been introduced to ensure that these funds pay tax on their dividends at the fund's tax rate rather than at the company rate (34 per cent for the 2000-01 income year).
Complying superannuation funds, approved deposit funds (ADFs) and pooled superannuation trusts (PSTs) which have an excess of imputation credits can generally now obtain a refund of these credits. All complying superannuation funds, ADFs and PSTs which lodge an annual income tax and regulatory return form are eligible for this refund.