Do CFD Dividend Payments include Franking Credits?

[Sunder]

As mentioned in the title, if you get a dividend from holding a CFD long across an ex-div date, when it comes time to doing tax, are you entitled to franking credits, or has this been worked into the dividend paid?

Thanks,

Ken.

 

[RamonR]

Have yet to trade CFD's yet but from ehat I have been reading you get the franking credit portion of it as cash. So you would not be able to claim it when you do your tax

 

[Krusty the Klown]

Its up to the individual CFD provider to whether they pass on the franking credit or not. It will be in the PDS of the provider.

I haven't come across one yet that does.

Generally it would be no, as no actual ownership of shares or dividend income occurs and transferring franking credits in a DMA situation like that would be an administration headache.

And when you think about it, a smart CFD provider, would use the credits to reduce their own tax bill.

 

[Fox]

Its up to the individual CFD provider to whether they pass on the franking credit or not. It will be in the PDS of the provider.

I haven't come across one yet that does.

I agree with Krusty. Googling the web, this seems to be the case. I've heard that Interactive Brokers (IB) does pay the CFD buyer franking credits, but you'll need to confirm this yourself. You can send a query to customer support at Interactive Brokers regarding this exact question if you are really interested.