Franking credits – rate change

Franking credits – rate change


For 2016-17, the small business company tax rate has been reduced to 27.5 per cent and the maximum franking credit small businesses can allocate has decreased from 30 per cent to 27.5 per cent.

The reduced maximum franking credit rate applies to companies with an aggregated turnover of less than $10 million.

Small businesses who have issued distributions based on the previous 30 per cent tax rate must inform their shareholders of the correct dividend and franking credit amounts as soon as possible. Sending a letter with the correct amounts or issuing an amended distribution statement is the best way to inform affected shareholders.

Please contact our office if you require any assistance.

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If you believe the matters discussed above are relevant to your business, please contact Darren Smith of our office to discuss further.


Darren is a Chartered Accountant with extensive experience, including working in the big 4 and medium sized firms before becoming a partner of a city based firm in 2000.

He has gained much experience and has extensive knowledge in providing business and taxation advice, superannuation planning, negotiation of sales and acquisitions of businesses and property development. His client base covers a wide range of industry groups.

Darren works with business owners to grow their businesses and create personal wealth within and outside of their business.


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