If you're paid or credited dividends or non-share dividends, you must include all of the following amounts in assessable income in your tax return:
- the unfranked amount
- the franked amount
- the franking credit, provided you're entitled to a franking tax offset for the franking credit (see Your franking tax offset for eligibility).
You can see on the Coals Tyer Ltd statement that John had no TFN amount withheld from the dividends he was paid or credited. If you don't provide an Australian company with your TFN, the company must deduct tax from the unfranked amount of any dividend at the highest income tax rate for individuals (45%) plus the Medicare levy (2%), which makes a total rate for 2024–25 of 47%. As John advises Coals Tyer Ltd of his TFN, no TFN amount was withheld.
If John doesn't advise Coals Tyer Ltd of his TFN, a TFN amount must be withheld from the unfranked amount of the dividend and shown by John in his tax return. John would then receive a credit for the TFN amount withheld.
If John receives more than one dividend statement during the income year, he shows the total amounts in his tax return.
Continue to: Effect on tax payable
Return to: Dividend or distribution statement