• Eligibility

    Is your organisation eligible for a refund of franking credits?

    Provided certain criteria are met, to be eligible for refunds of franking credits your organisation must be any of the following:

    • a charity endorsed by us as exempt from income tax
    • an organisation endorsed by us as a deductible gift recipient in its own right
    • a deductible gift recipient listed by name in the tax law
    • a public fund declared by the Treasurer to be a developing country relief fund
    • an exempt institution that is eligible for a refund under the regulations.

    Which endorsed income tax exempt entities are eligible?

    To be eligible for a refund of franking credits, an entity must meet all of the following requirements:

    • have an Australian business number (ABN)
    • be a resident
    • be a charity endorsed by us to access income tax exemption.

    An income tax exempt fund, under repealed item 4.1 of section 50-20 of the Income Tax Assessment Act 1997, that was endorsed on or before 31 December 2013 is treated as an endorsed charity that is exempt from income tax.

    Which deductible gift recipients are eligible?

    To be eligible to use this form for a refund of franking credits, a deductible gift recipient (DGR) must meet all of the following requirements:

    • have an Australian business number (ABN)
    • satisfy the residency requirement
    • be endorsed by us as a DGR in its own right or be a DGR listed by name in the Income Tax Assessment Act 1997.

    A DGR must be endorsed in its own right. It is not sufficient if your DGR is only endorsed in relation to a fund, authority or institution that it operates, such as a school building fund.

    What are the requirements for developing country relief funds?

    An entity is eligible for a refund of franking credits if it is a public fund declared by the Treasurer to be a developing country relief fund, and it has not been prescribed by regulation as ineligible for the concession.

    How do you check if your organisation is eligible?

    To check if your organisation is a DGR or a charity endorsed to access income tax exemption:

    On the ABN Lookup website, you can search for an organisation by its ABN, Australian company number (ACN) or name.

    The Current details screen for an organisation includes the following sections:

    • Charity tax concession status – this shows if the organisation is endorsed as an income tax exempt charity.
    • Deductible gift recipient status – this shows if the organisation is a DGR and if it is    
      • endorsed as a DGR in its own right – the section will state the organisation ‘is endorsed as a Deductible Gift Recipient’
      • endorsed as a DGR only in relation to a fund, authority or institution it operates – the section will state the organisation ‘operates the following funds, authorities or institutions’
      • a DGR listed by name in the tax law (and the organisation has an ABN) – the section will state the organisation ‘is listed by name as a Deductible Gift Recipient’.

    An income tax exempt fund, under repealed item 4.1 of section 50-20 of the Income Tax Assessment Act 1997, that was endorsed on or before 31 December 2013 is treated as an endorsed charity that is exempt from income tax.

    Does your organisation need an Australian business number?

    Yes. Generally, to be eligible for a refund of franking credits your organisation must be an endorsed income tax exempt charity or DGR. These types of entities will have been given an Australian business number (ABN) as a part of the endorsement process.

    Your organisation’s ABN will be pre-printed on the personalised refund of franking credits application form that we will send your organisation – if you applied for and received a refund in the previous financial year.

    Does your organisation need a tax file number?

    Yes. Your organisation’s tax file number (TFN) will be pre-printed on the personalised refund of franking credits application form that we will send your organisation – if you applied for and received a refund in the previous financial year.

    Does your organisation need an ABN if it has a TFN?

    Yes. To be an endorsed income tax exempt entity or DGR, your organisation must have an ABN. The refund of franking credits is generally only available to endorsed entities.

    Your organisation's ABN and TFN will be pre-printed on the personalised refund of franking credits application form that we will send your organisation – if you applied for and received a refund in the previous financial year.

      Last modified: 10 Dec 2015QC 16343