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  • How non-share dividends are taxed



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

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    Information about how non-share dividends are tax for resident shareholders.

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    Imputation system and dividends

    The imputation system applies to non-share dividends in the same way that it applies to dividends. A non-share dividend may be franked or unfranked. Any amount of the dividend, whether franked or unfranked, or any amount of franking credit carried by the dividend should be shown at the appropriate item on your tax return as if it were a dividend paid on shares.

    Dividends on non-equity shares

    Under the imputation system, dividends paid on certain shares that are classified as non-equity shares (for example, some redeemable preference shares) are treated as unfrankable distributions for imputation purposes. As a consequence, these dividends cannot be franked.

    Continue to: Dividend or distribution statement

      Last modified: 26 May 2022QC 68032