• Definitions

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    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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    Conduit foreign income

    Australian corporate entities (that is companies, trusts and partnerships taxed as companies) deriving certain types of foreign income can declare all or a portion of an unfranked dividend to be conduit foreign income. Show any conduit foreign income as an unfranked dividend on your application.

    Distribution statement

    Managed funds or unit trusts send a distribution statement (also called a taxation statement) to investors. The statement might include 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 (and 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. A franking credit can also be referred to as an 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%.

    Imputation credit

    See Franking credit above.

    Managed fund

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

    New Zealand imputation credit

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

    We cannot refund your imputation credits but will refund Australian franking credits attached to dividends you receive from a New Zealand company.

    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 dividend

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

    Tax file number (TFN) amount withheld

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

    Total dividend income

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

    Last modified: 29 May 2015QC 44186