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The dividend statement

Last updated 12 December 2019

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 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 2002 an Australian resident company, Coals Tyer Ltd, paid John Citizen, a resident individual, a fully franked dividend of $700 and an unfranked dividend of $200. John received the dividend statement shown below from Coals Tyer Ltd.

Coals Tyer Limited ABN 00 000 000 000 Shareholder dividend statement Notification of 2001 final dividend - paid 15 February 2002 Security description ordinary shares Number of shares 6,400 Unfranked amount $200 Franked amount $700 Imputation credit $300 TFN amount nil Net dividend $900 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.

End of example

We will follow the COALS TYER example through the next few sections of this publication to see what John needs to do with the information.

Example

John Citizen's assessable income for 2001-02 in respect of the dividend is:

Amount of franked dividend

$700

Imputation credit

$300

Unfranked dividend

$200

Total assessable dividend income

$1,200

 

End of example

If these were the only dividends John was paid or credited for the income year, he can transfer these amounts directly to item 11 on his 2001-02 tax return.

QC27432