Private companies that qualify as base rate entities under the Income Tax Assessment Act 1997 pay tax at 25% rather than the standard 30% rate. The maximum franking credit rate for a base rate entity is also 25%. In ChangeGPS Dividend Statement, set the company's Corporate Tax Rate to 25% in Step 1. This ensures the franking credit calculations use the correct rate. For example, a $10,000 fully franked dividend from a 25% tax rate company carries $3,333 in franking credits (calculated as $10,000 × 25/75), rather than the $4,286 that would apply at 30%. If you declare a fully franked dividend using the 30% rate for a base rate entity, you will over-frank the dividend, which creates a liability for the company.