E Australian franking credits from a New Zealand company



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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Dividends paid by New Zealand resident companies that have chosen to join the Australian imputation system may also carry franking credits.

Did the fund receive assessable franked distributions from a New Zealand franking company directly or indirectly through a partnership or trust?


Go to F Transfers from foreign funds.


Show at E the amount of Australian franking credits attached to the distributions that are included in assessable income adjusted as follows.

To work out whether the distribution is assessable, see the Foreign income return form guide.

You must reduce the Australian franking credits that the fund received directly or indirectly from a New Zealand franking company by:

  • the amount of a supplementary dividend, or
  • the fund’s share of a supplementary dividend


  • the supplementary dividend is paid in connection with the franked dividend, and
  • the fund is entitled to a foreign income tax offset because the franked dividend is included in the fund’s assessable income.

Show the amount of Australian franking credits included in assessable income at:

  • C2 Rebates and tax offsets item 12 for a non-complying fund
  • E1 Complying fund's franking credits tax offset item 12 for a complying fund or PST.

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

If the franking credit is attached to a dividend that is non-arm’s length income of a complying superannuation fund, complying ADF or a PST, the franking credit (along with the dividend) should be shown at U Net non-arm’s length income.

Last modified: 21 Aug 2015QC 44343