The company has excess franking credits accumulated from payment of tax at a 30% income tax rate and has not previously paid dividends.
What franking credit would be applied to a fully franked dividend paid in the 2022 financial year?
We assume your company is a base rate entity with a turnover of less than $50 million.
As of 1 July 2021, the company tax rate for base rate entities is 25%, and this is the franking credit percentage you apply to dividends.
While it may not seem fair, the fact that higher rates of company tax have been paid in the past is irrelevant.