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 franking credit
- the amount of tax file number (TFN) withholding tax withheld if you have not quoted your TFN to the company.
Example
On 15 February 2004, 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 from COALS TYER Ltd shown below.
End of exampleWe 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's assessable income for 2003-04 in respect of the dividend is:
Amount of franked dividend |
$700 |
Franking credit |
$300 |
Unfranked dividend |
$200 |
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 item 11 on his 2003-04 tax return.
End of example