Franked Credits

A franking credit is a unit of tax paid by companies in countries with a dividend imputation system. The Australian simplified imputation system started on 01 July 2002 which allows that only frankable distributions may be franked.

Who can frank credits?

Australian resident companies, corporate limited partnerships, corporate unit trusts and public trading trusts are franking entities. Mutual life insurance companies are excluded from issuing franking credits.

What distributions can be franked?