One common area of confusion seems to be the difference between franked dividends and unfranked dividends.
What is a dividend?
A dividend is the part of a company's profit which is distributed to shareholders. If you own shares in a public company, you probably have dividend income to declare.
What does it mean by 'franked'?
The franked portion of your dividend has already been taxed; the company has already paid tax on this profit at the 30% company tax rate. The good news for you is that you can claim an imputation credit of 30% of the franked amount (that way, the ATO is not double-dipping).
What about 'unfranked'?
The unfranked portion of dividends has not yet been taxed. This is treated the same as any other revenue, ie. it becomes a part of your taxable income.
0 comments:
Post a Comment