Is the ATO automatically refunding franking credits?

The Australian Taxation Office (ATO) automatically refunds franking credits to eligible taxpayers who receive dividends. If your franking credits exceed your tax liability, the excess will be refunded when you lodge your tax return .

Do I have to pay tax on fully franked dividends?

Fully franked dividends are paid with a franking credit, meaning the company has already paid tax on the profit. However, shareholders may still need to declare the dividend and the franking credit on their tax return . The franking credit is then used to offset any additional tax.

Are franking credits worth it?

Franking credits are highly beneficial for shareholders, especially retirees and those on lower incomes, as they can reduce tax liabilities or result in a tax refund .