Show download pdf controls
  • Partners who have an amount attributable to a dividend included in their net income or loss from a partnership



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

    End of attention

    When calculating its net income or loss for tax purposes, a partnership that is paid or credited a franked dividend includes both the amount of the dividend and the franking credit in its assessable income. This is subject to the partnership satisfying the holding period rule and other rules contained in the provisions dealing with franked dividends.

    If a share of the net income or loss of a partnership shown at item 13 Partnership and trusts on your tax return (supplementary section) is attributable to a franked dividend, you may be entitled to claim a franking tax offset, which is your share of the partnership’s franking credit arising from that dividend.

    You are not entitled to a franking tax offset if you do not satisfy the holding period rule or related payments rule in relation to your interest in the shares held by the partnership, or the partnership does not satisfy those rules in relation to the shares.

    If the partnership satisfies the rules in relation to the shares and the small shareholder exemption applies to you, you do not have to satisfy the holding period rule.

    For more information, see When you are not entitled to claim a franking tax offset.

    Example 10: Partnerships and trusts

    Partnership income


    Value ($)

    Franked dividend


    Franking credit, non-cash


    Net income of partnership


    Individual partner: ½ share


    Value ($)

    Taxable ½ share of net income of the partnership


    Other assessable income


    Total taxable income


    Gross tax at 2017–18 rates


    less ½ of the total franking tax offset


    Tax payable (see note)


    Note: This does not include any liability for the Medicare levy.

    End of example
      Last modified: 31 May 2018QC 55260