Banks, investment managers and self-managed superannuation funds have warned that a wide range of franked dividends paid to shareholders could be disallowed by the Australian Taxation Office under the Albanese government’s crackdown on capital raisings and share buybacks.

The Australian Banking Association has told the government that certain equity capital raisings and dividend reinvestment plans could be “deemed unfrankable”, despite the activity being required to meet the banking regulator’s capital rules to make the big lenders “unquestionably strong”.