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Last updated 5 March 2020

Distribution statement

Managed funds or unit trusts send a distribution statement (also called a taxation statement) to investors. The statement may include any unfranked dividends, franked dividends, TFN amounts withheld and franking credits.

Dividend income

If you own shares in a company, you will generally be paid a share of the company's profits as a dividend.

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).

Franked dividend

Franked dividends are paid to shareholders (or holders of non-share equity interests) out of profits on which the company has already paid 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. Franking credit can also be referred to as imputation credit, imputed tax credit, imputed credit, Class C imputation credit, imputation tax credit, Class C imputed credit, Australian franking credit or Australian imputed tax credit at the rate of 30%.

Managed fund

A managed fund is generally run by an organisation that manages investors' money through a diversified portfolio for a fee. Managed funds may include investment in any or all of the major asset groups such as cash, bonds, shares and property.

New Zealand imputation credits

New Zealand imputation credits are credits arising under New Zealand's imputation system. Australian imputation credits are now called franking credits.

The Australian Taxation Office cannot refund your New Zealand imputation credits.

Non-share equity interest

From 1 July 2001, certain interests which are not shares are treated in a similar way to shares for tax law purposes. These interests are called non-share equity interests.

Supplementary dividends

Supplementary dividends from New Zealand companies are treated the same as unfranked dividends.

Tax file number (TFN) amounts withheld

TFN amounts withheld are amounts withheld or deducted by the company or managed fund because you did not give them your tax file number.

Total dividend income

Total dividend income is the total of your unfranked dividends, franked dividends and your franking credits.

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.