Aussie franking credits.

[kiwi2007]

Am I correct in assuming that the franking credits that often come attached to ASX companies dividend payments are no use to an NZ tax resident?

[Ferg]

That is correct.

[Plata]

To my knowledge they offer shielding from Australian non resident withholding tax (I think it is 15% of the dividend). A fully franked dividend will have no deductions for AUS tax, but the IRD will take the full 33% resident withholding tax. If not fully franked, both AUS and NZ take some tax but the total tax paid will always be 33%. I am not an expert   but that is my current understanding.