Sorry Timwins. I am not wrong. Let me explain it to you.
I company makes (say) $100 profit on your behalf. It gives $30 to the ATO and $70 it gives to you with a franking credit of $30. When you do you tax return, your income from the company is $100.
When the tax payable/tax refund section is completed the tax that you are required to pay is reduced by the $30 the company has already paid on your behalf. Of course, if your income is so low you don't have to pay tax then the ATO will return the $30 to you.
STX Price at posting:
49.5¢ Sentiment: None Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)