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Franked distributions

12 October 2020

Franked distributions of a trust are taxed to the beneficiaries and the trustee in accordance with the rules in Subdivision 207-B of the ITAA 1997, which apply from the 2010–11 year. The rules specify how to:

  • calculate the portion/share of a franked distribution that the trustee or a particular beneficiary will be assessed on
  • allocate the franking credit attached to the distribution.

These rules only apply if the net income of the trust is greater than zero.