What are franking credits?
When you own shares or non-share equity interests in a company or when you invest in a managed fund, you might receive dividend distributions.
Dividends you receive from Australian companies and some New Zealand companies are taxed under a system known as imputation. The tax the company pays is allocated (or imputed) to you as franking credits attached to the dividends you receive.
Certain interests which are not shares are treated in a similar way to shares for tax law purposes. These interests are called non-share equity interests.
When are franking credits refunded to you?
You can claim a tax refund if the franking credits you receive exceed the tax you have to pay. This is a refund of excess franking credits.
You may receive a refund of the full amount of franking credits you receive, even if you don’t usually lodge a tax return.
Follow the step-by-step instructions to complete your application. If you need help contact our Tax Help service.
Can you use this application for refund of franking credits?
Check if you can use this application. All the statements below relate to the income year 1 July 2023 to 30 June 2024.
To use the application for a refund of franking credits, you need to meet all the following criteria:
- You don't have to lodge a tax return (see Do you need to lodge a tax return?).
- You were an Australian resident for tax purposes for the whole of 2023–24 (see Question 2 Were you an Australian resident for the whole period of 1 July 2023 to 30 June 2024).
- You are not claiming a refund of franking credits for a deceased estate.
- Your total dividend income was either
- $18,200 or less
- $416 or less, if you were under 18 years old on 30 June 2024.
- You either
- received dividends from shares (or non-share equity interests) in an Australian or New Zealand company
- were entitled to distributions from investments in a managed fund.
- Your dividend or distribution statement either shows
- franking credits, statements from New Zealand companies must show Australian franking credits (New Zealand imputation credits don't qualify).
- you had amounts withheld from your dividends because you did not provide your tax file number (TFN).
If you don’t meet all of the above criteria, you will need to lodge a tax return to claim the benefit of these franking credits.
Claiming your refund of franking credits
You have the following options to lodge an application for your refund of franking credits.
You can apply for your 2024 refund of franking credits any time after 1 July 2024, by either:
- self-help phone services
- by post – you need a copy of the application form, see Get the application for refund of franking credits
- online.
You will need all your dividend and distribution statements for 1 July 2023 – 30 June 2024. For help completing the application, see Instructions to complete your refund of franking credits application.
Online
You can apply online for a refund of your franking credits.
Lodging online allows us to complete your form using your personal details and the dividend records that have been reported to us. This will save you time and make your claim more accurate.
If you don’t already have a myGov account, you will need to Create a myGov account and link it to the ATO.
Once you have logged into your ATO Online account, from the menu at the top of the screen select 'Tax’, then 'Lodgments', then ‘Refund of franking credits’.
Continue to: Common questions about franking credits and refunds
Return to: How to get the application for refund of franking credits 2024