If ur a Centrelink recipient of a part pension ( portion is taxable) who hasn’t applied to get the tax free threshold.
Would u then qualify for the cash refund from franking credits if you income is below $18,200?
The only difference that I can see, is that a company is a 'payer' who pays withholding tax for the dividends.
Theoretically you are paying tax as it is earned from $1 - $18,200.
If you haven’t elected - was never asked since retiring- for the tax free threshold application form, shouldn’t that qualify for a cash refund. Since it constitutes the default option to pay tax from $1."
As I said many times I am neither an expert on taxation nor an expert on social security matters, nevertheless lets see if I can help.
1st, the point to have in mind is that Centrelink is just a payer of income like, for instance, an employer and as such may be in position to deduct at the source tax payable under the PAYG scheme. Whether the beneficiary has to apply for that or not I don't know.
2nd, if anybody including, of course, a Centrelink pension has an annual taxable income bellow the free threshold ($18,200.00) then he or she can file a form with the ATO declaring that he or she is no longer required to file a tax return. After that if he or she has dividend imputation credits that wishes to claim then he or she can claim them using a form specially designed for the effect. See l9ink bellow.
3nd, if is taxable income is above the free threshold then he or she must file a tax return and claim the entitlement to the dividend imputation credits there.
