How does a co-operative company choose to frank a distribution made to its members?

There is no formal election process a co-operative company must follow if it chooses to frank a distribution it makes to its members. It simply allocates franking credits to a distribution in the same way as other corporate tax entities. For more information on franking distributions, refer to the fact sheet Simplified imputation: franking a distribution.

Where a co-operative company makes a distribution to its members and allocates some franking credits to this distribution, it is required to provide a distribution statement, in the approved form, to members. The distribution statement will provide evidence of the extent to which a distribution has been franked. For more information on the approved form for distribution statements, refer to the fact sheet Simplified imputation and Trans-Tasman imputation: distribution statement requirements.

    Last modified: 17 Dec 2015QC 17074