How do I treat the dividend?

You received a fully franked dividend of 0.2 cents and a franking credit of approximately 0.086 cents per share.

Note: The exact amount of the franking credit that you received is on the notice that you received regarding the stapling arrangement.

If you are entitled to the franking credit, include both the franked dividend amount and the franking credit in your income for the 2004-05 income year - show them at item 11 on your tax return. (You will find the amounts on your dividend statement.) You automatically receive a tax offset equal to the franking credit when we process your return.

If you are not entitled to the franking credit, do not include it as income at item 11. You may not be entitled to the franking credit if you acquired your shares after 25 February 2005 (because of the 45-day holding rule). You are exempt from this rule if your total franking tax offset entitlements for the year are less than $5,000.

Refund of franking credits

A franking credit reduces the amount of tax you must pay. You may be entitled to a refund of any franking credit in excess of the tax you must pay; if so you will receive a credit for the excess when you lodge your tax return. If you are not required to lodge a tax return for the 2004-05 income year, Refunding franking credits - individuals explains how to get the refund without lodging a tax return.

    Last modified: 06 Oct 2009QC 18166