Franking Credits (ATO)
Although nothing changed per the ATO regarding Franking Credits, reposting from their website as we may decide to fully utilize the small shareholder exemption rule. Above 5K would need to meet the 45-day withholding rule.
Total franking credits entitlement below $5,000
Under the small shareholder exemption, you should ignore the holding period rule if all of your franking tax offset entitlements in a given year (whether received directly from a shareholding, or indirectly through a trust or partnership) are less than the maximum of $5,000. You still need to meet the related payments rule.
Related payments rule doesn’t apply to us.
Additional Notes:
We plan to utilize ChatGPT in our follow-up posts to calculate the DFC for the small shareholder exemption rule for all of our AU equities.
