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clock Created with Sketch. 12/04/23
11:01
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Originally posted by z4z:
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If I am not mistaken, the announcement indicates that shareholders have paid a Corporate Tax of 30% on this dividend. So the actual amount we are being paid into our accounts is 70% of the dividend, if you divide the dividend by 0.7 you will get the gross dividend, which in this case would be AUD$1.37/0.7 = AUD$1.96 . The other 30% has been withheld to pay the tax. And the ATO recognises that we have paid our 30% tax under the heading or system currently called "Franking Credits". It is not a credit at all, it it is recognition that we have already paid 30% tax on our dividends.
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Depends how much you earn whether you contribute to the government coffers. The franking credits can be offset against personal income and tax.
(20min delay)