Alexlee,
The franking credits have to be apportioned at the same rate the franked dividends were apportioned. But as you can now get a refund of the franking credits this should not cause you any problems.
The other trust would probably have to make a family trust election. It would also need to have at least a dollar in profit then distribute the profit to a beneficiary who could then claim the franking credits on the basis that they were the only beneficiary so they must have indirectly got 100% of the franked dividend before deductions were allowed for. Note there can be more than one beneficiary just pro rata. I just used one beneficary to make it simple to explain (I hope).
Alexlee wrote - Say I have shares in a DT that has $700 in franked dividends + $300 franking credits. Am I able to distribute franking credits to one beneficiary and the dividends to another beneficiary? Or do I have to follow the same franking %?
The franking credits have to be apportioned at the same rate the franked dividends were apportioned. But as you can now get a refund of the franking credits this should not cause you any problems.
TR 92/13
2. A resident beneficiary of a trust estate (other than a company or trustee of another trust estate) is entitled to a franking rebate if:
a share of net trust income is included in the assessable income of the beneficiary; and
some or all of that share of net trust income is attributable to a franked dividend included in the assessable income of the trust estate.
Alexlee wrote - Also, in the above example if I distribute $1,000 to another trust that has a net loss position, can the trust get a refund for imputation credits?
The other trust would probably have to make a family trust election. It would also need to have at least a dollar in profit then distribute the profit to a beneficiary who could then claim the franking credits on the basis that they were the only beneficiary so they must have indirectly got 100% of the franked dividend before deductions were allowed for. Note there can be more than one beneficiary just pro rata. I just used one beneficary to make it simple to explain (I hope).