Reporting Franking Credits on dividends received from a SBE company

This support note applies to:

• AO Tax (AU)
• AE Tax Series 6 & 8 (AU)
• AE Tax (AU)

From 1 July 2015, where a Small Business Entity (SBE) company satisfies the eligibility requirement, their corporate tax rate may be reduced from 30% to 28.5% (2015-16 year) and 27.5% (2016-17 year and continuing).

In MYOB Tax 2017, where an entity has received a franking credit from an SBE company the franking credits will automatically calculate at 30% of the franked amount. You will need to manually overwrite the franking credit to equal either 28.5% or 27.5% of the franked amount for 2015-16 and 2016-17 year respectively. There is no label in the income or dividends section to specifiy that the dividends have been received from an SBE company.  

If you are completing a tax return for the SBE Company that has paid the dividend, the Interest and Dividends Paid (BT) schedule will now calculate the franking credit at 27.5% in MYOB Tax 2017.0 where the SBE eligibility worksheet has been completed correctly and appears on the front cover of the return.