What is the tax law regarding private company dividend to a superfund in pension phase?

If an excessive private company dividend (fully franked) is paid to a complying superfund in pension phase, will the franking credit still be 100% refundable as all income of the Fund will be tax exempt? The only asset the Fund owns is the shares in the private company. The dividend will likely be paid just before or in the course of a members voluntary windup of a solvent company. Any and all thoughts welcome.

That is an interesting one. I have never come across this in my files.
An private company dividend can be considered a special income of the fund and therefore taxed at the highest marginal. But as you know, whether a private company dividend is excessive or not, it is self assessed now.
When the fund is already on a pension phase, it is exempted from income tax.
So your question is really - what will happen to special income if received when SF is already on a pension phase?
As far as I know there is no exclusion on what is exempted when a fund is under a pension phase!
I will ask around as well. I like this question.

Add: -
I have now asked the ppl at work. The answer is - s 295-385 (2) of ITAA 97.
For additional reference - s 295-550 ITAA 97, TR 2006/7 point # 142.

I think that you may have to go back a step before simply asserting special income under the ITAA.

What is the position with the private company? Are the members of the Super Fund involved in the private company (ie, are they directors or public officers)? If so, this triggers arms length issues and hence brings into question deeming of the dividend as special income.

My thoughts would be that if there is an arms length problem, then although the Fund is in pension phase the income may well be quarantined from the usual concessional treatment. One needs to also be mindful that such concessional treatment is not lost (and thus losing tax status).

My best advice would be to consult a super expert in your state. If there are no arms length considerations I don't see why the dividend should not be treated as normal investment income and being subject to concession. If there are arms lenght probs, then it may open up the Fund to other issues as stated.