Refunding excess franking credits – individuals

Dividends paid to shareholders by Australian resident companies are taxed under a system known as imputation, 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.

Dividends and franking credits

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 of your income tax and Medicare levy liabilities have been met.

Next steps:

    Last modified: 23 Aug 2016QC 16183