If an Australian company pays or credits you a 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 imputation credit
- the amount of tax file number (TFN) withholding tax deducted if you have not quoted your TFN to the company.
In the following example there is an example of a shareholder dividend statement.
Example
On 15 February 2001 an Australian resident company, OPQ Ltd, paid John Citizen, a resident individual, a fully franked dividend of $660 and an unfranked dividend of $200. John received the dividend statement shown below from OPQ Ltd.
End of exampleWe will follow the OPQ example through the next few sections of this booklet to see what John needs to do with the information.
OPQ example
Example
John Citizen's assessable income for 2000–01 in respect of the dividend is:
Item |
Amount |
---|---|
Amount of franked dividend |
$660 |
Imputation credit |
$340 |
Unfranked dividend |
$200 |
Total assessable dividend income |
$1,200 |
End of example
If these are the only dividends John Citizen was paid or credited for the income year, he can transfer these amounts directly to item 11 on his 2000–01 tax return.