small shareholder entitlement

Hi there,

Can a smsf utilise the small shareholder entitlement? ie If my fund receives less than $5K of franking credits, does it qualify for these even if it has not met the 45 day rule? Or is this entitlement only available to individuals?

Furthermore, if it can - is the smfs viewed seperatly from it's members? , so that each individual can utilise the small shareholder entitlement in there own right, as well as the smsf?

any help would be much appreciated

 

Hi Swadney,

To my knowledge the exemption only applies to individuals. It doesn't apply to other entities such as SMSFs - a SMSF will still need to satisfy the 45 day rule.

If you receive dividends (and franking credits) from a trust via distributions, then those credits will also apply to the individuals $5k threshold.

The SMSF is totally separate from its members. This separation is one of the cornerstones of SMSF legislation.

To answer your question the individual members have one threshold each (although with jointly held shares they need to apportion their share of dividends and franking credits) and the SMSF has no threshold.

Thanks
SM

 

thx Superman, this has cleared this up for me.