No Salary Income but have dividends.

[Hansie]

I am hoping that you lovely ladies maybe able to help me once again.

For this tax year I have no income but do have shares in my name for both our boys. They are all DRP's (Dividend Re-investment Programs) and all but one is fully franked. This is the first year I have had this situation and just would like some confirmation of I guess what I already know and that is that I still have to lodge a tax return? Would that be right?

We usually go & have someone do it for us but don't really need to at the moment as our tax is not complicated & at $150 a pop it's a waste of money.


Thanks in advance for any help you maybe able to offer.

[Phteven]

Even though the dividends are reinvested they are still counted as income.
You can use the franking credits to offset your tax (or your DH's tax if they are held jointly).

If the income is below the tax threshold you just need to notify the ATO that you don't need to lodge.

[Rowellen]

I think there is a special form that you can lodge to claim back franking credits if you have no other income. Have you searched on the ATO website?

[Rowellen]

I did a search on "claim franking credits" on the ATO site & found this info. It's for 2011 but I assume it will be much the same for 2012 just with different dates.

[Hansie]

Thank you. I had looked on the ATO website but I obviously wasn't typing in the right things. Thank you so much Rowellen much appreciated.

Onyx - thank you. They are solely in my name being the lowest earner out of DH & I.

[Floweryfields]

Don't forget the tax free threshold from July 1 is much higher too - you can 18200 before you pay any tax.