請問大家澳洲稅務中，Franking credit是什麼東東？

A franking credit is a nominal unit of tax paid by companies paying tax in countries that have a dividend imputation system. Franking credits are passed on to shareholders along with dividends. Shareholders include in their assessable income not the dividends received but the grossed-up amount back-calculated from that dividend and the current tax rate, then have their income tax payable calculated thereupon, then use franking credits to offset tax payable at the rate of a dollar per credit. In Australia & New Zealand the end result is the elimination of double taxation upon company profits.

Refunding franking credits - individuals


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Dividends paid to shareholders by Australian resident companies are taxed under a system known as ‘imputation’. It is called an imputation system because the tax the company pays is imputed, or attributed, to the shareholders. The tax paid by the company is allocated to shareholders by way of franking credits attached to the dividends they receive.

You include an amount equal to the franking credit attached to your dividend in your assessable income. You are also entitled to a franking tax offset equal to the amounts included in your income (there are some exceptions to this rule, see What are the anti-avoidance rules? below).

The franking tax offset will cover, or partly cover, the tax payable on the dividends. If the tax offset is more than the tax payable on the dividends, the excess tax offset will be applied to cover, or partly cover, any tax payable on other taxable income received.

If any excess tax offset amount is left over after that, the Tax Office will refund that amount to you.

Average franking credit and rebate yields
Friday 10 January, 2003


Section 160APHR of ITAA36 deals with persons qualified by electing to have franking credit ceilings and franking rebate ceilings applied by reference to franking credits or rebates on a benchmark portfolio of shares [see para 4.750 of your 2002-03 Tax Summary].
These are the average franking credit and rebate yields update for month ended 31 July 2002 (issued by the ATO on 2 January 2003).
The franking credit and rebate yields on a share portfolio comprising the All Ordinaries Index, to be used by taxpayers making an election under s.160APHR can be downloaded here .
These yields are calculated with the assistance of Standard & Poor's and incorporate changes made as a result of the deemed dividends which arose from the following buybacks:
Commonwealth Bank of Australia in March 1999 and 10 April 2001
Woolworths Ltd in February 2000 and 22 June 2001
Lend Lease Corporation Ltd on 5 October 2000
Capral Aluminium Ltd on 9 April 2001, and
NRMA Insurance Group Ltd on 25 May 2001.
For example, the yields for the 12 months to 30 June 1999 are:

--average dividend yield: 3.65%
--average franking rebate yield: 1.44%
--average franking credit yield: 1.44% x 64/36 = 2.56%.

A franking credit is a nominal unit of tax paid by companies paying tax in Australia & New Zealand that have a dividend imputation system. It was enacted Australian Commonwealth Consolidated Acts - Income Tax Assessment Act in 1936. Franking credits are passed on to shareholders along with dividends. Shareholders include in their assessable income not the dividends received but the grossed-up amount back-calculated from that dividend and the current tax rate, then have their income tax payable calculated thereupon, then use franking credits to offset tax payable at the rate of a dollar per credit. As a result, it is the elimination of double taxation upon company profits.