1.1.F.175 Franked dividends

Usage

These definitions apply to all payments.

Definition

Franked dividends are dividends, or shares of company profits, paid or credited by an Australian resident company from profits that have had Australian company tax paid on them.

Franked dividends can be:

  • fully franked - the whole amount of the dividend carries an imputation credit, or
  • partly franked - only part of the amount of the dividend carries an imputation credit.

Act reference: Income Tax Assessment Act 1997 Part 3-6 The imputation system

Policy reference: SS Guide 1.1.I.25 Imputation credits, 4.3.9.60 Income from Private Companies & Trusts

Last reviewed: 1 July 2016