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Can franking credits offset tax payable on concessional contributions?

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

  1. JoelVermeer

    JoelVermeer Member

    Joined:
    9th Sep, 2016
    Posts:
    21
    Location:
    New South Wales
    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.
     
    twisted strategies likes this.
  2. AnthonyKing

    AnthonyKing Active Member

    Joined:
    30th Oct, 2010
    Posts:
    40
    Location:
    Sydney NSW
     
  3. AnthonyKing

    AnthonyKing Active Member

    Joined:
    30th Oct, 2010
    Posts:
    40
    Location:
    Sydney 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
     
    Terryw likes this.