Access your income statement
You will receive either an income statement via myGov or a payment summary from your employer depending on how
The company tax rate for small businesses has been reduced to 27.5% for 2016-17 and the maximum franking credit small businesses can allocate has decreased to 27.5% (previously 30%).
This reduced rate applies to companies with an aggregated turnover of less than $10 million.
If you are a small business and have issued distributions based on the 30% tax rate, you should tell your shareholders of the correct dividend and franking credit amounts as soon as possible.
This can be done by sending a letter with the correct amounts or issuing an amended distribution statement.
The company should let the ATO know the correct amounts through the company’s annual dividend reporting process.
Source: https://www.ato.gov.au/Tax-professionals/Newsroom/Income-tax/Rate-change-for-franking-credits/
