Franking Account Worksheets

Click the label item 8: label M—Franking account balance to open the Franking account worksheet (xfa)

The xfa worksheet assists with the management of movements into and out of the franking account. It also calculates any over-franking tax where applicable. We recommend that you complete the xfa before the Franking account tax return (far).

Use the xfa to record the quarterly transactions such as:

• opening balance (debit or credit)

• payments of instalment tax, and any refunds on assessment (debits)

• the issuing of franked dividends (credits).

To add extra rows, press Ctrl+Insert. To delete rows, press Ctrl+Delete.

When you close the xfa, we'll integrate relevant totals to sections A and B in the franking account tax return (far).

Completing Part B of the Franking account tax return (far)

Example 1: Franking account balance in credit

When you close the xfa, the relevant balance passes to label A.

Labels C, F and K are self-explanatory and completed only if relevant.

Example 2: Franking account is in deficit (FDT).

When you the close the xfa if there is a deficit you must open the Franking account tax return (far) to see the result.

The deficit shows in Section A and at label B in Section B.

Where the franking percentage for a distribution exceeds the benchmark franking percentage, liability for OFT arises unless the Commissioner has made a determination permitting the over-franking. See Franking account tax return instructions on the ATO website for further information.

To open the Over-franking tax worksheet (xfo), press Alt+S at Label D in Section B of the Franking account tax return.

This worksheet calculates the over-franking tax using the formula: A x B x C / (C-1)

Where:

A = the franking differential percentage
B = the frankable distribution amount
C = the corporate tax rate

The total over-franking amount integrates to Section B, Label D in the Franking Account Tax Return.

Example Franking account return - Sections B and C

• Section B label D now shows the Over-franking tax amount.
• Section C The benchmark franking percentage has been entered.

If you are due a Franking deficit offset or have a franking deficit offset from a prior year that has not been able to be offset against your current tax liability, then you must complete label F in the Calculation Statement to have it included in your Estimate of tax payable.  

You can print a worksheet as client copy or Facsimile print-out.

You must not sign the Declaration, the Public officer must sign the pre-printed ATO form that you have downloaded and completed.

1. Highlight or open your client’s company return.

2. Select Preparation > Delete Schedules.

3. Highlight the entry for the Franking Account Tax return and its supporting schedules (for example: xfa and xfo).

4. Click Delete.

5. Click Yes at the prompt to complete the deletion.