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  • Franked dividends

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    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

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    Franked dividends are said to carry 'imputation credits', a credit for the tax paid by the company on its income. Franked dividends can be either fully franked-meaning that the whole amount of the dividend carries an imputation credit-or partly franked-meaning that only part of the amount of the dividend carries an imputation credit.

    Note:

    If you are a non-resident of Australia, any franked dividends you are paid or credited are exempt from Australian income and withholding taxes. However, you are not entitled to any franking rebate for franked dividends. You cannot use any imputation credit attaching to franked dividends to reduce the amount of tax payable on other income and you cannot get a refund of the imputation credit. Do not include the amount of any franked dividend or any imputation credit on an Australian tax return.

    Last modified: 05 Dec 2006QC 16138