Franking Credits

[prl]

On 25/12/2013 19:17, PeterO wrote:
> ... My question is how to treat a refund cheque from the Tax Office 
> that contains the above Franking Credits. ... 
Unless you're below the income tax threshold (after adding the franking 
credits to your taxable income), Franking Credits aren't simply added to 
your refund.

The franking credits in your dividend statements are added to your 
taxable income along with the dividents actually paid, tax owing on the 
taxable income is calculated on the total taxable income and then the 
amount of the franking credit is deducted from your tax owing. So I 
think that the simplest scheme would be to enter the franking credits as 
taxable income, and then the franking credit rebate as a reduction in 
the total tax owing. After all, that's how it's calculated, and it 
properly accounts for situations where adding the franking credit takes 
you from one tax bracket to a higher one..

Peter