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K Franked dividend amount

Last updated 24 March 2021

Was the SMSF paid franked dividends, including franked non-share dividends?

No

Leave K blank. Go to L.

Yes

Read on.

Write at K the total amount of franked dividends, and franked non-share dividends, that were paid to the SMSF. The amount at K should not be reduced by any loss or outgoing related to the income.

If you include an amount at K that is exempt current pension income, also include it at Y Exempt current pension income.

Do not include:

  • franking credits (include these at L Dividend franking credit)
  • franked dividends that are a share of net income from a trust (include these at M Gross trust distributions)
  • franked dividends that are part of a distribution from a partnership (include these at I Gross distribution from partnerships)
  • franked dividends that are part of a distribution from a pooled development fund (unless you have elected to include the franked dividends in the SMSF's assessable income)
  • franked dividends from a New Zealand franking company (include these at D1 Gross foreign income)
  • franked dividends on which family trust distribution tax has been paid
  • franked dividends that are non-arm's-length income of a complying SMSF (include these at U1 Net non-arm's length private company dividends).

L Dividend franking credit

Were franking credits attached to dividends paid to the SMSF for which it is entitled to a franking credits tax offset?

No

Leave L blank. Go to M.

Yes

Read on. 

Write at L the total amount of the franking credits:

In addition to including a franking credit at L, you must also include it at either:

  • E1 Complying fund’s franking credits tax offset in Section D if the SMSF is a complying fund
  • C2 Rebates and tax offsets in Section D if the SMSF is a non-complying fund.

If you include an amount at L that is exempt current pension income, also include it at Y Exempt current pension income.

The amount at L should not be reduced by any loss or outgoing related to the income.

Do not include:

  • the dividend that the franking credit is attached to (include it at K Franked dividend amount)
  • franking credits where the SMSF is not entitled to a franking credits tax offset (do not include these anywhere on the SMSF annual return)
  • franking credits that are part of a share of net income from a trust (include these at M Gross trust distributions)
  • franking credits that are part of a distribution from a partnership (include these at I Gross distribution from partnerships)
  • Australian franking credits from a New Zealand franking company (include these at E Australian franking credits from a New Zealand company)
  • franking credits that are part of a distribution from a pooled development fund (unless you have elected to include franked dividends and thus the franking credits in the SMSF's assessable income)
  • franking credits on which family trust distribution tax has been paid
  • franking credits attached to a dividend that is non-arm's-length income of a complying SMSF (include these at U1 Net non-arm's length private company dividends).

QC48236