What is a franking credit?
A franking credit is the organisation’s share of tax paid by a company on the profits from which the organisation’s dividends or distributions are paid. There are a number of different names for a ‘franking credit’. The statement may show ‘imputed tax credit’, ‘imputed credit’, ‘Class C imputation credit’, ‘imputation tax credit’, ‘Class C imputed credit’, ‘franking credit’ or ‘Australian imputed tax credit at the rate of 30%’.
