Franking Credit

In a financial sense, “franking” has to do with tax policy aimed at avoiding double taxation.

Basically, a franking policy looks at the history of a money stream, then only allows the government to tap that stream once.

A franking credit is a tax benefit received by a shareholder receiving a dividend. Under the system, the corporate taxes paid by the company issuing the dividend is returned to the shareholder receiving the dividend.

See: Franked Dividend.