Conduit foreign income
Australian corporate entities (companies, trusts or partnerships taxed as companies) with certain types of foreign income can declare all or part of an unfranked dividend as conduit foreign income. Show any conduit foreign income as an unfranked dividend on your application.
Distribution statement
Managed funds or unit trusts send a distribution statement, AMMA statement or taxation statement to investors. The statement might include unfranked dividends, franked dividends, TFN amounts withheld and franking credits.
Dividend income
If you own shares in a company, you will generally be paid some of the company’s profits as a dividend.
Dividend statement
Companies send a dividend statement to shareholders and holders of non-share equity interests to advise them of the amount of dividends paid to them. It also advises whether the dividends are franked or unfranked, the amount of franking credit, and TFN amounts withheld (if any).
Franked dividend
Franked dividends are paid to shareholders and holders of non-share equity interests out of profits on which the company has already paid tax.
Franking credit
A franking credit is your share of tax paid by a company on the profits from which your dividends or distributions are paid. A franking credit is also known as an:
- imputation credit
- imputation tax credit
- imputed credit
- imputed tax credit
- Australian imputed tax credit
- Australian franking credit
- Class C imputation credit, or
- Class C imputed credit
Imputation credit
See Franking credit.
Managed fund
A managed fund is generally run by an organisation that manages investors’ money through a diversified portfolio for a fee. Managed funds might include investment in any or all the major asset groups such as cash, bonds, shares and property.
New Zealand imputation credit
New Zealand imputation credits are credits arising under New Zealand’s imputation system. We cannot refund your New Zealand imputation credits.
Australian imputation credits are called franking credits. We refund Australian franking credits attached to dividends you receive from a New Zealand company.
Non-share equity interest
Certain interests which are not shares are treated in a similar way to shares for tax law purposes. These interests are called non-share equity interests.
Supplementary dividend
Supplementary dividends from New Zealand companies are treated the same as unfranked dividends.
Tax file number (TFN) amount withheld
'TFN amounts withheld' are amounts withheld or deducted by the company or managed fund because you did not give them your TFN.
Total dividend income
Total dividend income is the total of your unfranked dividends, franked dividends and franking credits.
Unfranked dividend
Unfranked dividends have had no Australian company tax paid on the profits from which they are paid. If the dividend is unfranked, there is no franking credit.
Use these instructions to help you complete the application for refund of franking credits for individuals.