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  • Refunding excess franking credits – individuals

    Individuals may be eligible for a refund of excess franking credits and there are different ways you can apply for a refund.

    In this section

    Dividends and franking credits

    Dividends paid to shareholders by Australian resident companies are taxed under a system known as imputation. This is where the tax the company pays is imputed, or attributed, to the shareholders. The tax paid by the company is allocated to shareholders as franking credits attached to the dividends they receive.

    If you receive franking credits on your dividends, you need to let us know your:

    • franked amount
    • franking credit.

    If you are an Australian resident, we will use this information to:

    • reduce your tax liability from all forms of income (not just dividends) and from your taxable net capital gain
    • refund any excess franking to you after any income tax and Medicare levy liabilities have been met.
      Last modified: 03 Jun 2022QC 16183