Franking Credit

A Franking credit allows companies in Australia to pass on tax paid at the company level to shareholders. The tax paid by the company is allocated to shareholders as franking credits attached to the dividends they receive.

It is also known as an imputation system and credit is refundable. This means that if no tax is payable, or if the franking credit amount is greater than the amount of tax calculated on your income, then the balance is payable to you as a refund.

If you receive franking credits on your dividends, you need to update us with the following information:

  •    Your franked amount
  •    Your franking credit

 

If you are an Australian resident, this information will be used for the following:

  •    To reduce your tax liability from all forms of income (not just dividends)
  •    To reduce your tax liability from your taxable net capital gain
  •    To refund any excess franking to you after any of your income tax and Medicare levy liabilities have been met.

Private Health Insurance Offset

Private Health Insurance Offset

The Private Health Insurance Offset also referred to as the Private Health Insurance Rebate, allows you a tax offset for a percentage of the premium you paid to a registered health insurer for a complying private health insurance policy. The percentage you can claim as an offset depends on the age of the oldest person the policy covers.

 

You can claim the Private Health Insurance Offset as a:

  • Reduction in your private health insurance premium through your tax return
  • Cash or cheque rebate from Medicare
  • A refundable tax offset at the end of the income year through your tax return
  • A combination of the preceding options, one for a different period of the year

Franking Credit

Franking Credit

 

A Franking credit allows companies in Australia to pass on tax paid at the company level to shareholders. Tax paid by the company is allocated to shareholders as franking credits attached to the dividends they receive.

It is also known as an imputation system and this credit is refundable. This means that if no tax is payable, or if the franking credit amount is greater than the amount of tax calculated on your income, then the balance is payable to you as a refund.

If you receive franking credits on your dividends, you need to update us with the following information:

  •    Your franked amount
  •    Your franking credit

 

If you are an Australian resident, this information will be used for the following:

  •    To reduce your tax liability from all forms of income (not just dividends)
  •    Reduce your tax liability 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.