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  • Eligibility for a refund

    Attention

    Warning:

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

    End of attention

    Endorsed charities that 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)
    • satisfy the residency requirement
    • be a charity endorsed by us as exempt from income tax.

    An income tax exempt fund, under repealed item 4.1 of section 50-20 of the Income Tax Assessment Act 1997 that was endorsed on or before 31 December 2013 is treated as an endorsed charity that is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

    Deductible gift recipients that are eligible

    To be eligible 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
    • the entity must 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.

    Residency requirements

    Endorsed charities and endorsed deductible gift recipients will satisfy the residency requirement if, at all times during the income year for which organisation is applying for a refund, it meets both of the following requirements:

    • it has a physical presence in Australia
    • to the extent that it has a physical presence in Australia, it incurs its expenditure and pursues its objectives principally in Australia.

    Check if your organisation is eligible

    Visit the Australian Business Register website at abn.business.gov.auExternal Link to check if your organisation is:

    • a DGR
    • endorsed as a charity exempt from income tax

    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 an entity ineligible for the concession.

      Last modified: 10 Feb 2017QC 40495