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Whether receive franking credits

27 Mar 2018

When companies pay dividends to Australian shareholders out of after-tax profit, shareholders receive franking credits, which they can claim as a tax deduction. If the shareholder does not pay any tax, they receive a cash refund from the tax office. This system is known as “dividend imputation” and these cash payments cost the Government about $6 billion per year. Do you personally receive a tax deduction or a cash payment for franking credits?

  Total   Men Women Aged 18-34 Aged 35-54 Aged 55+ Less than $600

pw

$600-1,000 pw $1,000-1,500 pw $1,500-2,000 pw More than $2,000 pw
Yes, receive a tax deduction 16% 20% 12% 18% 15% 15% 3% 10% 17% 19% 29%
Yes, receive a cash payment 10% 12% 8% 8% 7% 14% 9% 12% 12% 9% 8%
No, don’t receive either. 60% 56% 64% 52% 64% 64% 72% 64% 61% 53% 52%
Not sure 14% 12% 16% 22% 14% 7% 15% 15% 10% 19% 10%

 26% said they either received a tax deduction or a cash refund for their franking credits.

Those most likely to receive a tax deduction were incomes over $2,000pw (29%), full-time workers (23%) and university educated (24%).

Those most likely to receive a cash payment were aged 65+ (22%).

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