Generally, distributions that are made out of realised profits can be franked. A distribution includes:
- a dividend, or something taken to be a dividend, made by a company
- a distribution made by a corporate limited partnership, other than a distribution from profits or gains arising during a year of income in which the partnership was not a corporate limited partnership
- something taken to be a dividend, made by a corporate limited partnership, or
- a unit trust dividend made by a corporate unit trust or public trading trust.
Generally, a distribution is frankable unless the legislation specifies that it is unfrankable.
A distribution does not have to be called a dividend to be a frankable distribution.