This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
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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.
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.
If you own shares in a company you will generally be paid a share of the company’s profits as a dividend.
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 dividends are paid to shareholders and holders of non-share equity interests out of profits on which the company has already paid tax.
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
- imputed tax credit
- imputed credit
- Class C imputation credit
- imputation tax credit
- Class C imputed credit
- Australian franking credit, or
- Australian imputed tax credit.
See Franking credit.
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. Australian imputation credits are now called franking credits.
We cannot refund your imputation credits. We will refund Australian franking credits attached to dividends you receive from a New Zealand company.
Non-share equity interest
From 1 July 2001, 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 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 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.
Last modified: 28 May 2020QC 62120