Franking credits in ChangeGPS Trust Distribution are attributed to specific beneficiaries as part of the distribution configuration in Step 2. When the trust receives franked dividends from a company investment, those franking credits can be passed through to beneficiaries as part of the distribution. In non-streaming mode, franking credits are typically distributed proportionally to beneficiaries based on their share of the distribution. In streaming mode, franking credits attached to franked dividends can be streamed to specific beneficiaries. ChangeGPS Trust Distribution calculates the franking credits attributed to each beneficiary automatically based on the distribution amounts and franking percentages entered. Beneficiaries include the franking credit amount on their individual tax return as a tax offset.
How are franking credits handled in Trust Distribution?
Overview of franking credits in trust distributions, including allocation and beneficiary tax treatment