Company is not trading but is earning interest and holds assets. This year reported a loss, but has franking credits available and Retained Profits from prior years. Are they able to pay a fully franked dividend
Hi @MARegan
Generally, dividends paid by an Australian resident company out of profits will be frankable, unless a specific law deems the distribution to be unfrankable. Distributions made by a company out of its retained earnings are considered to be made out of profits.
When deciding if the company is able to pay a fully franked dividend, you should consider the benchmark rule and whether the company has a sufficient franking account balance.
For more information about franking dividends, see Paying dividends and other distributions.
Hi @MARegan
We'll do some research and get back to you. Stay tuned.
Hi @MARegan
Generally, dividends paid by an Australian resident company out of profits will be frankable, unless a specific law deems the distribution to be unfrankable. Distributions made by a company out of its retained earnings are considered to be made out of profits.
When deciding if the company is able to pay a fully franked dividend, you should consider the benchmark rule and whether the company has a sufficient franking account balance.
For more information about franking dividends, see Paying dividends and other distributions.
15 Apr 2026 · 4 min read time
16 July 2025 · 5 min read time
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