ato logo
Search Suggestion:

Taxation implications

Last updated 10 February 2020

If you are paid or credited dividends you are required to include the following amounts in assessable income on your tax return:

  • the unfranked amount
  • the franked amount
  • the imputation credit.

We show you below how John Citizen would complete item 11 on his tax return, using the figures in the example.

You can see on the OPQ statement above that John had no TFN amount deducted from the dividends he was paid or credited. Where a resident shareholder does not provide an Australian company with their TFN, the company is required to deduct tax from the unfranked amount of any dividend at the highest income tax rate for individuals (47%) plus Medicare levy (1.5%)-a total rate for 2000–01 of 48.5%. As John advised OPQ Ltd of his TFN, no TFN amount was deducted.

If John had not advised OPQ Ltd of his TFN, a TFN amount would have been deducted from the unfranked amount of the dividend and shown by John on his tax return at V. A credit for the TFN amount deducted would then be allowed in John's tax assessment.

If John received more than one dividend statement during the income year he would need to show the total amounts at S, T, U and V of item 11 on his 2000–01 tax return.

11 Dividends Label S Unfranked amount: $200 Label T Franked amount: $660 Label U Imputation credit: $340 Label V Tax file number amounts deducted from dividends: $0

 

QC99300