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What is a refund of franking credits?

Last updated 14 July 2020

What are franking credits?

When you own shares or non-share equity interests in a company or when you invest in a managed fund, you may get dividend distributions.

Dividends paid to you by Australian companies and some New Zealand companies are taxed under a system known as imputation. The tax paid by the company is allocated (or imputed) to you as franking credits attached to the dividends you receive.

When are franking credits refunded to you?

If the franking credits you receive exceed the tax you have to pay you can claim this difference back as a tax refund. This is what is known as a refund of excess franking credits.

You may be entitled to a refund of the full amount of franking credits received, even if you don't normally lodge a tax return.

In this publication you will find an Application for refund of franking credits for individuals 2008 (PDF 228KB)This link will download a file.

You can fill in this application yourself following the simple step-by-step instructions, or with help from our free services (see More information). If you are not familiar with some of the terms used, see Definitions.