If an Australian company pays or credits you a dividend or a non-share dividend, the company should also send you a statement advising:
- the amount of the dividend that is unfranked
- the amount of the dividend that is franked
- the amount of franking credit, and
- the amount of tax file number (TFN) withholding tax withheld if you have not quoted your TFN to the company.
Example 1: Payment of dividends
On 15 February 2010 an Australian resident company, Coals Tyer Ltd, paid John, a resident individual, a fully franked dividend of $700 and an unfranked dividend of $200. John received the dividend statement from Coals Tyer Ltd shown in example 3.
We will follow the Coals Tyer Ltd example through the next few sections of this guide to see what John needs to do with the information.
Example 2: Assessable dividend income
John's assessable income for 2009-10 in respect of the dividend is:
Unfranked dividend received |
$200 |
Franked dividend received |
$700 |
Franking credit |
$300 |
Total assessable dividend income |
$1,200 |
If these were the only dividends John was paid or credited with for the income year, he can transfer these amounts directly to item 11 Dividends on his 2010 tax return.
Example 3: Dividend statement
ABN 00 000 000 000 |
Payment date |
||||
Notification of 2009 final dividend - paid 15 February 2010 |
|||||
Security description |
No. of shares |
Unfranked amount |
Franked amount |
Franking credit |
|
Ordinary shares |
6,400 |
$200 |
$700 |
$300 |
|
|
|||||
TFN Amount |
$0.00 |
Net dividend |
$900.00 |
||
Please note that your tax file number has been received and recorded. Please retain this advice for taxation purposes as a charge may be levied for a replacement. Please advise promptly in writing of any change of address. |
|||||