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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, and
    • the amount of tax file number (TFN) withholding tax withheld if you have not quoted your TFN to the company.

    Example 1: Payment of dividends

    On 15 February 2009, 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 in example 3.

    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 2: Assessable dividend income

    John's assessable income for 2008-09 in respect of the dividend is:

    Unfranked dividend received

    $200

    Franked dividend received

    $700

    Franking credit

    $300

    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 12 Dividends on his 2009 tax return.

    End of example

     

    Example 3: Dividend statement

    00 000 000 000
Payment date: 15 February 2009
Shareholder dividend statement
Notification of 2008 final dividend - paid 15 February 2009
Security description: Ordinary shares
No. of shares: 6,400
Unfranked amount: $200
Franked amount: $700
Franking credit: $300
TFN amount: nil
Net dividend: $900.00
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: 23 Oct 2019QC 21779