Claim back those credits

Just because you don't need to lodge a tax return this year doesn't necessarily mean you are not entitled to a refund from the ATO.

Anybody who has received dividends or distributions from equity interests, both share and non-share, as well as managed funds, may be eligible to claim excess imputation credits.

Dividends and distributions often have imputation credits attached which can be used to offset a person's tax liability. However, where the credits exceed the liability, individuals can claim a refund for the difference.

Many people overlook the value of imputation credits, particularly when they are not otherwise required to submit a tax return.

While there are rules governing the claiming of imputation credits, which your adviser will explain to you, generally excess credits can be claimed following the end of the financial year in which the distribution was made.

People should remember to alert their adviser to any equity interests they may have, even if they are not lodging a tax return this year.