An unnecessary giveaway? Refunds of franking credits

An unnecessary giveaway? Refunds of franking credits

Dividend imputation was introduced by the Hawke-Keating Government as a way of preventing the double taxation of dividends as part of the profits of companies and as personal income for the investor. In this system, the franked amount was added to taxable income and a tax offset of the same size prevented taxation of the amount and lowered taxation of the dividend.