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Dividends Worksheet for entities (div)

Companies, Funds, Partnerships and Trusts

The Dividends received worksheet provides for the details of one or more dividend received transactions to be recorded.

The taxpayer's share of the total amounts entered integrates to the Dividend labels in the main return.

Do NOT enter share of Distributions from Cash Management, Property and certain other unit Trusts in this worksheet. This income should be entered at Distributions from Partnerships and Trusts in the relevant return type.

The total amounts transfer to the relevant labels in the income tax return and are rounded on integration. TFN withheld is expressed as a dollar and cents amount in the main return.

All the amount fields accept cents. It is important to remember to key the decimal point, as otherwise the amount entered will be treated as whole dollars.

The franking credit is calculated from the Franked amount entered in the previous field. Once the Franking credit has been calculated by the system, if the Franked amount needs to be changed, then both the Franked amount and the Franking credit fields will need to be cleared, in order for the new calculation to proceed.

Information recorded for each transaction

Company nameThis identifies the Australian entity paying the dividend. To add extra entries to the worksheet, click [Ctrl+Insert].
Unfranked amountThis is the amount on which Australian company tax has not been paid. It should be detailed on the dividend statement sent by the company or trust paying the dividend. The amounts entered are totalled and transferred on integration to the relevant label in the main return.
Franked amountThis is the amount of the fully franked dividend received (grossed up to include any franking credits attached to it).
Franking credit

This is the total of franking credits attached to dividends that have been franked at the company tax rate of 30% or, for small business entities, 27.5%. An amount equal to the franking credit will be automatically allowed as a tax offset to reduce any tax payable on the dividends and any other taxable income received.

The franking credit:

  • is allowed as a rebate to reduce the amount of tax payable

  • is limited to gross tax payable before Medicare

  • must be present for each franked dividend entered but cannot exceed 30% of the franked dividend amount

  • if an amount of franked dividends is present, then a franking credit must also be present

TFN withholdingThis is the amount of tax withheld where the taxpayer has failed to quote a tax file number (TFN). The amount withheld should be detailed on the Dividend statement received. This amount cannot exceed 48.5% of the Unfranked amount.
Share account?Entering Y at this field will open the Index of Joint owners. Details entered and recorded in this Index will be rolled over from year to year. See Creating the transaction for Share details below.
Joint Owner Joint owner will only be displayed where Share account? is Y.
Creating the transaction for Share details

After entering Y at the Share account? field, the Index of Joint owners window appears. Perform the following steps to create the transaction for Share details:

  1. From within the Index of Joint owners window, click New. The Share details screen is displayed.

  2. In the General tab, Share to: field click [F10] or click on the ellipsis to open the Select Return index.

  3. Select the return to receive the share.

  4. Enter the percentage share for that return.

  5. Press [F6] to save the entry.

  6. Click Cancel to return to the index if there are no other returns to share this interest amount.

Index of Returns Sharing Dividend Income
Joint Tax file NoBy providing this detail the identity of another return that is to receive a share of the income is recorded.
Joint shareThis percentage is used to calculate the Share TFN credit and Share dividend.
Share TFN creditThis amount is calculated using the percentage entered at Joint share.
Share dividendThis amount is calculated using the percentage entered at Joint share.

When the Distribute button is selected the income and credits will be shared in accordance with the details and percentage entered in the Share details dialog and a corresponding dividend worksheet will be created in the Sharee's return.

Non-residents withholding tax rate

For non-residents, click the ellipses [...] to select the Withholding Tax rate from the For non-residents select the withholding tax rate field.

Withholding Tax is the amount of tax withheld by financial institutions or companies issuing dividends to non-residents.

If applicable, select the relevant withholding rate. Although the rate can vary from country to country, the tax withheld on dividends is generally calculated at a rate of 30%.

The rate of tax selected is applied to the Unfranked Dividends for estimate calculation purposes only.

If the taxpayer was not an Australian resident for tax purposes for all or part of the year do NOT include income paid or credited during that period unless:

  • the dividend was fully franked, or
  • the dividend was not fully franked but withholding tax was (or should have been) withheld from the unfranked amount.
Dividend Deductions

For Partnerships and Trust the total deduction entered in to this worksheet integrates to the Deductions relating to Australian Investment Income item in the main return. To add extra lines for deductions click [Ctrl+Insert].

For Companies and Funds deductions are not entered in this worksheet as the breakdown into Australia-type and Overseas-type amounts is required.

Printing the worksheet

When the worksheet is printed, the Host return will show the details of the transaction and the details of the Share return: the Return Code and Name of the taxpayer the interest was shared to.

The Sharee's return will show the details of the transaction and the details of the Host return: the Return Code and Name of the taxpayer the interest was shared from.

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