With your individual tax return
If you need to lodge a tax return, you declare your dividend income, including unfranked amounts, franked amounts and franking credits. We use this information in your tax return to work out your franking credits and apply this to determine the tax payable or refundable on your assessment.
You don't have to do anything else.
If you don't need to lodge a tax return, you can claim a refund of your franking credits online, over the phone or by post. If you're eligible we will automatically refund your franking credits.
Online
You can apply online for a refund of your franking credits, you will need a myGov account and to link it to ATO online services.
To apply online, you need to:
- log into your ATO Online account
- select Tax from the menu at the top of the screen
- select Lodgments
- select Refund of franking credits.
When you lodge online we pre-fill your personal details and the dividend records third parties reported to us. You should check the information and add any missing details before you submit your application.
Most dividend records are available by late July, if you wait until then, most of your information will be available in pre-fill.
Once you complete and submit your application, you will receive an email a receipt confirming we have your application. Keep your franking credit documents with your other financial records, you don't need to send a copy to us.
We usually process online forms within 2 weeks (10 business days). To review your online form and details at any time, log in to our online services again.
Prior year applications for RFC
If you have franking credits from a prior income year, you also can claim these online.
To apply for a prior year online, you need to:
- log into your ATO Online account
- select Tax from the menu at the top of the screen
- select Lodgments
- select Income tax
- in the Not lodged tab, locate the income year not lodged
- select the link Claim a refund of franking credits.
Automatic refund of franking credits
During tax time 2025, we'll automatically refund franking credits to eligible individuals and issue a notice of assessment. To do this we use information that share registries report to us. Unless advised by us, eligible people won't need to apply for a refund of franking credits.
Eligibility for an automatic refund of franking credits
You may be eligible to receive an automatic refund of franking credits if you meet all the following criteria:
- you're over 60 years old on 30 June 2025
- we have your current postal address – you can check this on ATO online services
- you're not a tax agent client – you can check this on ATO online services
- you held the same parcel of shares for the last 2 income years
- you were a resident for tax purposes for the whole income year
- your total franking credit refund is not more than $5,460
- you don’t have to lodge a tax return due to other income you've received (for example, rental or personal services income, losses or deferred losses from primary or non-primary production, partnership or business income)
- your total dividend income is not more than $18,200 and your basic tax liability is less than your franking credits after considering your eligibility for any other tax offsets
- you didn’t lodge a TFN (employment) declaration during the last 2 income years
- your super income stream total taxed and untaxed amounts don’t exceed $100,000
- you don’t have any capital gains tax.
We base eligibility on your previous year’s information and other information banks, employers and others report to us. Even if you receive an automatic refund of franking credits in a prior year, you may not be eligible again if:
- your circumstances have change
- we later receive information that means you're no longer eligible.
If this happens, we'll notify you in writing that you're no longer eligible and you may need to lodge a tax return.
Who isn't eligible for an automatic refund of franking credits
You aren't eligible to receive an automatic refund of franking credits if, before the automatic process runs, you:
- lodge a tax return for 2024–25
- submit an application for a refund of franking credits
- are a tax agent client.
When we are notified of a person's death, we'll remove them from the automatic refund of franking credits process. Any dividend income and franking credits entitlement may be included when managing the deceased person's tax affairs.
How it works
Each year, we receive information from share registries, managed funds and other third-parties about dividends and investment holdings.
Once we receive the information we expect that relates to your previous share holdings, we calculate your refund and issue a notice of assessment. We will deposit your refund directly into your bank account.
If we don’t receive any information from share registries or other third-parties, we can't provide a refund or issue a notice of assessment. Where we don't receive information, you must lodge, before 31 October, either a:
- tax return
- application for refund of franking credits form.
If we receive some but not the information we expect, we'll refund these amounts to your bank account and issue a notice of assessment. If we receive further information later, we'll refund the subsequent amounts and issue an amended notice of assessment.
We issue refunds from mid-July, with most finalised by August, but the timing depends on when we receive the information. If you're eligible, we'll send you a letter or SMS in mid-June detailing the process and when to expect your refund.
If you don't want to receive an automatic refund, phone 13 28 65 (Fast Key Code 2, 2) to opt out. Opting out doesn’t change your eligibility for future years.
If you aren't in the automatic program and want to apply for a refund of your franking credits, you can do this online, over the phone or by post.
Over the phone
You can complete a paper copy of Application for refund of franking credits for individuals and then lodge your form over the phone
Lodging by phone will take you approximately less than 7 minutes and we will process applications we receive by phone within 2 weeks (10 business days).
To lodge by phone:
- Complete the form, then phone us on 13 28 65 to lodge it. Have a copy of the form you complete with you.
- At the prompts, enter your tax file number (TFN), and then press 2.
- After you verify your identity you will hear a series of automated questions asking you for the information on your application.
- Give your answers by speaking into the phone. Speak naturally, as in normal conversation. There is no need to slow down.
- If you need help with a question, say ‘help’.
- If you need the system to repeat a question, say ‘repeat’.
- If you hear a message saying ‘I’m having trouble getting that’, the system will ask you to try again, or the service might ask you to use your phone keypad instead. Wait for the question to finish, then speak clearly when answering.
- Listen carefully because at certain questions the information you provide will be read back to you to allow you to confirm it is correct. If you make a mistake you will have the opportunity to correct the details.
- If you hang up or must leave the phone call because of a problem with the system, we retain the information you provide until you return to continue with your lodgment.
- At the end of the lodgment you'll receive a receipt number. Write this number in the space provided on page 2 of your form.
Don't send the application you complete to us, keep it with your other financial records. We record your phone call in case we need to refer to it later.
Benefits of lodging by phone
- The service is available 24 hours a day, 7 days a week (to avoid busy periods, phone before midday, after 5:00 pm or on weekends).
- It is available from anywhere in Australia.
- Most refunds issue within 2 weeks (10 business days).
- It takes less than 7 minutes to lodge your application.
However, you can't use this service to lodge for prior income years – only for 2024–25.
By post
To lodge by post, you will need to complete a paper Application for refund of franking credits for individuals.
Once complete, post your application to:
Australian Taxation Office
GPO Box 9845
[insert the name and postcode of your capital city]
For example:
Australian Taxation Office
GPO Box 9845
SYDNEY NSW 2001
It can take up to 50 business days to process claims we receive by post.