Distribution statement
Managed funds or unit trusts send a distribution statement, AMMA statement or tax statement to investors. The statement might include unfranked dividends, franked dividends, TFN amounts withheld and franking credits.
You should keep your distribution statement with a copy of your application. Don't send us a copy of the statement.
Dividend statement
Companies send a dividend statement to shareholders and holders of non-share equity interests to advise them of the amount of dividends paid to them. It also advises whether the dividends are franked or unfranked, the amount of franking credit, and TFN amounts withheld (if any).
You should keep your dividend statement with a copy of your application. Don't send us a copy of the statement.
Other amounts on your distribution statement from a managed fund
If you don’t need to lodge a tax return, you don’t need to worry about amounts such as capital gains, foreign source income and foreign income tax offsets even if your statement tells you to include them at a specific question in the tax return.
To process your application, we need only the figures your statement shows at ‘franked amounts’, ‘unfranked amounts’, ‘franking credit’ or ‘TFN amounts withheld’.
Conduit foreign income
Australian corporate entities (companies, trusts or partnerships that pay tax as companies) with certain types of foreign income can declare all or part of an unfranked dividend as conduit foreign income. Show any conduit foreign income as an unfranked dividend in your application.
Unfranked dividend your distribution statement shows as conduit foreign income
If your distribution statement shows an unfranked dividend and declares it to be conduit foreign income, show this amount in your application as an unfranked amount.
Unfranked dividend
Unfranked dividends have had no Australian company tax paid on the profits from which they are paid. If the dividend is unfranked, there is no franking credit.
Refunds for TFN amounts withheld or deducted from interest income
You'll need to lodge a tax return to claim TFN amounts withheld or deducted from interest income.
Franked dividend
Franked dividends are payment amounts to shareholders and holders of non-share equity interests out of profits where the company already pays the tax.
Franking credit
A franking credit is your share of tax paid by a company on the profits from which your dividends or distributions are paid. A franking credit is also known as any of the following:
- imputation credit
- imputation tax credit
- imputed credit
- imputed tax credit
- Australian imputed tax credit
- Australian franking credit
- Class C imputation credit
- Class C imputed credit.
Reinvesting dividends and refund of franking credits
If you reinvest dividends, you can still claim a refund of franking credits.
Shares or non-share equity interests in joint names with your spouse
If you own shares or non-equity shares in joint names and you can claim a refund of franking credits use this application. You only state your share of the dividends and franking credits from the joint statement.
Your spouse can also claim a refund of franking credits, they must complete a separate application or lodge a tax return. They should state only their share of the dividends and franking credits.
Franking credit refunds and your pension entitlement
In most cases receiving a franking credit refund won't affect your pension entitlement. However, if you receive a distribution from a private company or trust the refund could affect your pension entitlement.
Owning shares in a New Zealand company and claiming franking credits
Not all New Zealand companies will pay dividends with Australian franking credits. You can only claim a refund of the Australian franking credits on the dividends.
You can't claim a refund of any New Zealand imputation credits.
If you pay New Zealand non-resident withholding tax on the dividend, reduce the amount of franking credits that you can claim by any supplementary dividend.
New Zealand imputation credit
New Zealand imputation credits are credits arising under New Zealand’s imputation system. We can't refund your New Zealand imputation credits.
Australian imputation credits are called franking credits. We refund Australian franking credits attached to dividends you receive from a New Zealand company.
Declaring supplementary dividend amounts from a New Zealand company
If your dividend statement shows a supplementary dividend amount from a New Zealand company, include this amount as an unfranked dividend. No franking credits are attached to supplementary dividends.
Continue to: Instructions to complete your refund of franking credits application
Return to: What is a refund of franking credits?