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P Trust distributions franking credit

Last updated 12 February 2019

Show at P the total amount of the fund’s share of franking credits relating to a franked distribution received indirectly through a trust.

Do not show franking credits relating to franked distributions received indirectly through a trust if one of the following applies:

  • the franking credits were attributable to a distribution from a New Zealand franking company; if the fund received franking credits indirectly from a New Zealand franking company, see E Australian franking credits from a New Zealand company
  • the holding period rule or related payments rule were not satisfied in relation to the dividend
  • the fund’s share of net income from the trust includes dividends paid or credited by a company that has made an interposed entity election and FTDT has been paid; the dividend is excluded from assessable income under section 271-105 of Schedule 2F to the ITAA 1936 and a franking credit or tax offset cannot be claimed for any franking credit attached to that dividend
  • the dividend washing integrity rule applies
  • there is some other manipulation of the imputation system - the Commissioner may make a determination to deny imputation benefits where you have entered into a scheme for the purpose of obtaining franking credit benefits
  • the franked distribution from the trust is exempt income or non-assessable non-exempt income of the fund, other than a distribution that is exempt from income tax under the exempt current pension income (ECPI) rules; see Y Exempt current pension income.

If the fund is entitled to a franking credits tax offset, show the fund’s share of the franking credits attached to such franked distributions at:

  • E1 Complying fund's franking credits tax offset item 12 if the fund is a complying superannuation fund, complying ADF or PST, or
  • C2 Rebates and tax offsets item 12 if the fund is a non-complying superannuation fund or non-complying ADF.

If the fund is not entitled to a franking credits tax offset, do not show the franking credit attached to the dividend anywhere in the fund tax return.