• E1 Complying fund’s franking credits tax offset

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    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    Subject to the fund satisfying the holding period rule and related payment rule, a complying superannuation fund, complying ADF or PST is entitled to a refundable franking credits tax offset in respect of franked dividends received (including franked non-share dividends and assessable franked dividends from a New Zealand franking company).

    Show at E1 the amount of franking credits that relate to franked dividends received including franked non-share dividends and assessable franked dividends from a New Zealand franking company. Make sure you have included the amount of franking credits in the assessable income shown at:

    • I Gross distribution from partnerships item 10
    • L Dividend franking credit item 10
    • P Trust distributions franking credit item 10
    • E Australian franking credits from a New Zealand company item 10
    • U Net non-arm's length income.

    If the fund is a non-complying superannuation fund or a non-complying ADF, the fund is entitled to a non-refundable tax offset of franking credits that relate to franked dividends received (including franked non-share dividends and assessable franked dividends from a New Zealand franking company) against the income tax liability of the fund. Show the amount of the franking credits at C2 Rebates and tax offsets. Make sure you have included the amount of franking credits in the assessable income shown at I Gross distribution from partnerships, L Dividend franking credit, P Trust distributions franking credit, E Australian franking credits from a New Zealand company and U Net non-arm's length income.

    Do not show at E1 credits that you have included at C1 Foreign income tax offset or payments for the fund’s 2013–14 tax liability. Show any amounts already paid for the fund’s 2013–14 tax liability at K PAYG instalments raised.

    A dividend from a New Zealand franking company may also carry New Zealand imputation credits. An Australian resident cannot claim New Zealand imputation credits.

    Last modified: 05 Nov 2014QC 40267