flywire The following has some information of the treatment of franking credits in the hads of an investor. https://www.insightaccounting.com.au/2017/03/share-dividend-income-franking-credits/
It would appear that generally they form a part of your taxble income but would need to be recorded in a separate income account/category. If your assessed tax payable then the amount of the franking credit is deducted from you assessed tax if it exceeds your franking credit totals and if your assessed tax is less than the total of your franking credits, then you may be entitled to a refund of the difference between your franking credit total and your assessed tax payable if you ar eligible. https://www.ato.gov.au/Individuals/Investments-and-assets/in-detail/investing-in-shares/refunding-franking-credits---individuals/?page=2#:~:text=Total%20franking%20credits%20entitlement%20of%20%245%2C000%20or%20more&text=To%20be%20eligible%20for%20a,day%20of%20acquisition%20or%20disposal). If you are not eligible then you do not need to gross up your income by the amount of the franking tax credits. It would generally be wise to record the franking tax credits in a separate taxable income account in any case, then at tax time make the decision as to whether you are entitled to the tax credit dpending on whether you meet the requirements below. I personally use an appropriately named asset account as the second account for the transactions recording the receipt of franking credits and at tax time would zero that account (credit it) in reducing the tax payable liability (debit this account) or in determining the tax refund if you are eligible. (I am normally eligible). If you are not eligible under the above provisions at tax time, then you do not have to include the franking tax credits as part of your income, in which case you would add a reversing transaction to the transactions recordinmg the franking credits, zeroing the asset account and the franking credit income account annotated accordingly. This is my personal approach to recording franking credits but should not be interpreted as accounting advice. If in any doubt consult an accountant. David Cousens On Thu, 2021-08-26 at 23:37 +1000, flywire wrote: > The guide leaves stock and mutual fund financial account structure very > open and search only showed one Franking/Franked thread in the recent past. > I'm wondering what people do in practice. > > Share dividends looks doable: Bank deposit = Unfranked + Franked - Tax > Withheld. Franked has unpaid Franking Credits. Where does the contra > account for Franking Credits sit? (I use a fairly simple account tree.) > > ETFs: have about 10 tax codes that don't bear much resemblance to actual > payments. How do people handle these? (I realise financial records only go > so far preparing for tax. It's looking like a spreadsheet.) > > I'm not looking at tracking physical shares/ETFs in GnuCash. > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > If you are using Nabble or Gmane, please see > https://wiki.gnucash.org/wiki/Mailing_Lists for more information. > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
