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Franking deficit tax liability for late balancing corporate tax entities

The special rules for calculating your franking deficit tax (FDT) liability if you are a late balancer.

Last updated 31 July 2023

A late balancing corporate tax entity is one that has obtained permission from the Commissioner of Taxation to use an approved substituted accounting period (SAP) where the SAP balance date is in lieu of the preceding 30 June. PS LA 2007/21 Substituted accounting periods (SAPs) gives more detail on SAPs.

If you are an eligible entity, you may haves the option to have your FDT liability determined at 30 June.

As a late balancer, when you are calculating your FDT offset if you have:

  • elected to have your FDT liability determined on 30 June, special rules apply
  • not elected to have your FDT liability determined on 30 June, the normal rules apply.

The Commissioner has the discretion not to apply the 30% FDT offset reduction. This is if it is determined that the deficit was caused by events outside the control of the entity.

Option to have franking deficit tax liability determined at 30 June

The option to have your franking deficit tax (FDT) liability determined at 30 June and what happens with refunds.

Late balancer calculating an FDT offset

How you calculate your franking deficit tax (FDT) as a late balancer.

Commissioner’s discretion not to apply the reduction

Describes when the Commissioner of Taxation has the discretion not to apply the 30% FDT offset reduction.

QC50648