Knowledge Shop Blog

June Tax Round Up - over-franked dividends and the corporate tax rate change

The practical issues arising from the SBE threshold changes and the corporate tax rate changes.

Parliament has finally passed the Bill containing the increase in the SBE turnover threshold. While it all seems straight forward, there are a few details for practitioners to get across.

This Bill also includes the company tax rate cuts, changes to the way the imputation system works and the small business tax offset rules. This update provides a summary of the key aspects of the Bill and practical implications to take into account (see legislation).

One possible problem area arising from the company tax rate change is that some companies may have over-franked dividends during the 2017 year. The ATO some released a draft guide which sets out practical steps that these companies can take to rectify the situation.

Join the Knowledge Shop team for all this and more.

Members can download the full June 2017 Tax Round Up from the member-only website. To see what Knowledge Shop membership offers, call Julie on 1800 800 232 or take a tour online. 


Join Bradley Beer (CEO, BMT Tax Depreciation), Michael Carruthers (Tax Director, Knowledge Shop), Rae Ni Corraidh (Tax Adviser, Knowledge Shop), and Lisa Armstrong (MD, Knowledge Shop) for just the juicy bits of change for accountants and advisers:

  • The practical issues arising from the SBE threshold and corporate tax rate changes – flow on franking and imputation changes and whether a company is carrying on a business – how far does the definition stretch?
  • A new PCG on companies now subject to the 27.5% limit that have breached the maximum franking rate rules by paying franked dividends at 30%
  • Depreciation deduction changes announced in the Budget – how the measures impact on residential investment clients
  • A case that demonstrates why the assessable recoupment rules can apply in a broader range of situations than you would assume - Denmark Community Windfarm Ltd v Commissioner of Taxation [2017] FCA 478



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Things you should know:

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