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  • The dividend statement

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    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: Payment of dividends

    On 15 February 2005, 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 at the bottom of this page.

    End of example

    We will follow the Coals Tyer example through the next few sections of this guide to see what John needs to do with the information.

    Example: Assessable dividend income

    John's assessable income for 2004-05 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 2005 tax return.

    Coals Tyer Limited ABN 00 000 000 000
Payment date 15 February 2005
Shareholder dividend statement
Notification of 2004 final dividend - paid 15 February 2005
Security description: Ordinary shares
No. of shares: 6,400
Unfranked amount: $200
Franked amount: $700
Franking credit: $300
TFN amount: $0
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
    Last modified: 05 Mar 2020QC 27610