If an Australian company pays or credits you with a dividend or a non-share dividend, the company must also send you a dividend statement or distribution statement advising:
- the name of the entity making the distribution
- the date on which the distribution was made
- the amount of the distribution
- the amount of any franking credit allocated to the distribution
- the franking percentage for the distribution
- where the distribution is unfranked, a statement to that effect
- where the distribution is franked, the franked part and the unfranked part
- where any or all of the unfranked amount of the distribution has been declared to be conduit foreign income, the portion so declared
- 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 2023, 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.
End of exampleWe 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
Dividend |
Value |
---|---|
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 question 11 Dividends on his 2023 tax return.
End of example
Continue to: Taxation implications