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Item 12 - Dividends

See item 12: Dividends on the ATO website.

If the TOFA rules apply to the partnership, include all unfranked dividends paid or credited to it by Australian companies at label K.

Don't lodge a partnership tax return where you weren't in a partnership carrying on a business, and the only income derived jointly or in common with another person was:

  • rent from a jointly owned property
  • interest from a jointly-held account, and
  • dividends from jointly-held shares.

In these three instances, each person shows their share of the income and expenses on their own tax return.

Completing the labels

Use the Dividend worksheet (div) to enter details of each dividend received. When you enter the franked amount, the application calculates the statutory franking credit. You can edit this figure if the dividend was partially franked. Enter transactions in dollars and cents. We'll round the total on integration to the main return. Where the dividend is co-owned, sharing functionality is available in the worksheet. See Gross dividends worksheet (div).

Dissection and record keeping fields are:

  • Name of company: Enter the name of the company exactly as it's shown on the dividend statement.
  • Unfranked dividend: Enter the unfranked dividends received before deducting any TFN amounts.
  • Franked dividend: Enter the franked dividends received.
  • Franking credit: This figure is automatically calculated when you press Enter or Tab to move away from the franked amount field. To restore automatic recalculation of the franking credit after editing it, delete the franked amount and the franking credit, then re-enter the franked amount for auto-calculation of the franking credit amount.
  • TFN amounts: TFN amounts withheld cannot exceed 50% of unfranked dividends.

CCH references

4-100 Taxation of dividend recipients

4-110 What is a dividend

4-120 When is a dividend paid

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