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 paid to you by Australian companies and some New Zealand companies are taxed under a system known as imputation. The tax paid by the company is allocated (or imputed) to you as franking credits attached to the dividends you receive.
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 received even if you don’t usually lodge a tax return.
You can fill in the application yourself following the simple step-by-step instructions. If you need extra help contact our Tax Help service. If you are not familiar with some of the terms used, see Definitions.