Can franking credits offset tax payable on concessional contributions?

Discussion in 'Superannuation, SMSF & Personal Insurance' started by PeterT, 23rd May, 2018.

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  1. PeterT

    PeterT Active Member

    Joined:
    9th Sep, 2016
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    Sydney
    Question is in the title: for a super fund in accumulation phase, concessional contributions are taxed at 15% - is that tax offsettable by franking credits generated from equity holdings within the fund?

    My assumption is YES, but happy for anyone to correct me.
     
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  2. AnthonyK

    AnthonyK Active Member

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    12th Jul, 2018
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  3. AnthonyK

    AnthonyK Active Member

    Joined:
    12th Jul, 2018
    Posts:
    44
    Location:
    NSW
    Hi Joe
    A SMSF is taxed only on Net Income so rest easy Joe the share dividends if fully franked have a tax credit but you do report the GROSS dividend as income as Income minus operating costs.
    The tax credit reduces your net income from all sources.
    The answer to your question is YES but your tax is on Net Income regardless of sources or nature.
    Happy Investing!
    AnthonyK
     
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