See Franking account tax return instructions on the ATO website for further information.
We've provided worksheets to assist with managing your franking account, completing labels in the company return and for your internal records.
They are not ATO forms or schedules and you can't lodge them electronically or manually.
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)
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.
- 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.
Highlight or open your client’s company return.
Select Preparation > Delete Schedules.
Highlight the entry for the Franking Account Tax return and its supporting schedules (for example: xfa and xfo).
Click Yes at the prompt to complete the deletion.
4-100 Overview: taxation of dividend recipients
4-700 Franking accounts
13-160 Franking credit
4-720 Franking debits
4-730 Franking surplus or deficit
4-780 Liability to franking deficit tax