Franked Dividends

Under the 45 day rule applies for larger shareholders if the investor wants to be eligible for franking credits on any franking credits from their dividend. If their total of imputation credits entitlement exceeds $5,000, then they must hold the shares for 45 days + 2 days. This basically means that you can't just buy shares just to get a franking credit and sell them afterwards.

Check these Circumstances

In Australia, franked dividends is the practice of issuing a dividend with a personal tax credit attached. Franked dividends serve the purpose of avoiding the anomaly of double taxation of dividends. The amount of the tax credit depends upon the issuer's tax rate and the amount of the dividend.

Franked dividend is an Australian arrangement that eliminates double taxation of dividends. It is the practice of issuing dividend with a personal tax credit attached to it. The amount of the tax credit depends upon the issuer's tax rate and the amount of the dividend.