The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

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: 9 November 2020

The Australian Government acknowledges Aboriginal and Torres Strait Islander peoples throughout Australia and their continuing connection to land, water, culture and community. We pay our respects to the Elders both past and present.