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May 2018

Labor’s franking credit policy

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The current dividends taxation system ensures company dividends received by Australian resident shareholders are taxed under a system known as ‘imputation’, meaning taxes paid by companies are allocated to shareholders by way of franking credits attached to dividends. So, for instance, if you receive a franked dividend, you may be entitled to a franking tax offset and refund. However, a new proposal has been recently proposed to change this!

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