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Franking account tax return

Work out when a franking account tax return must be lodged.

Last updated 8 August 2018

A franking account tax return must be lodged by a franking entity that is:

  • liable to pay franking deficit tax (because it has a deficit balance in its franking account at the end of the income year)
  • liable to pay over-franking tax (because the franking percentage for a distribution exceeded the permitted benchmark franking percentage)
  • obliged to disclose a significant variation in its benchmark franking percentages to us
  • given a written notice by the Commissioner of Taxation.

The franking account tax return must generally be lodged by the last day of the month following the end of the income year – typically 31 July. This is also the date by which franking deficit tax and over-franking tax is payable.

If the entity has a substituted accounting period, the franking account tax return is due on the last day of the month following the end of its substituted income year.

However, late balancing corporate tax entities that have chosen to have their franking deficit tax liability determined on 30 June must:

  • lodge a franking account tax return and pay any franking deficit tax by 31 July
  • lodge any further franking account tax return required, pay any over-franking tax and notify of any significant variation in its benchmark franking percentages by the last day of the month following the end of its substituted income year.

See also:

QC47308