To be eligible for the refund of franking credits, a deductible gift recipient (DGR) must:
- be endorsed by the Commissioner as a DGR or be specifically named in one of the tables of recipients for deductible gifts in the Income Tax Assessment Act 1997
- have an Australian business number
- be an Australian resident at all times during the income year in which the dividend is paid directly to the charity by the company, or paid indirectly through a trust.
A DGR must be endorsed in its own right. It is not sufficient if the DGR is only endorsed in relation to a fund, authority or organisation that it operates, such as a school building fund.
Each year, the ATO sends a personalised refund application package to organisations that:
- are recorded with us as an endorsed income tax exempt entity, a deductible gift recipient (DGR) endorsed in its own right or a DGR specifically named in the Act or prescribed in the Regulations
- applied for and received a refund in respect of the previous year.
The application package contains a form, instructions and information sheet. Organisations that are endorsed, and wish to apply for a refund and have not received a refund package, should contact us.
Replacement forms are available on request from us by phoning 1300 130 248.