Generally, a co-operative company will be allowed to frank:
- so much of its assessable income for the current income year that it distributes among its members as rebates or bonuses based on business done by members with the company, or interest or dividends on shares, and
- realised profits from sources other than assessable income for the current income year that it distributes to its members.
Franked distributions made by a co-operative company are treated in the same way as franked distributions made by other corporate tax entities. A corporate tax entity includes a company, corporate unit trust, public trading trust and limited partnerships.