Ann: Appendix 4E - Preliminary Final Report, page-23

I have been looking to determine their power to pay fully franked dividends. After listening to a podcast little while back they seemed very keen to do so.

When I look at the income tax for the period it is $8,741,765. When I look at the income tax liability on the balance sheet we have $4,073,876. Our difference is the decrease in the DTA from $5,199,298 to $531,410 ($4,667,889).

So it looks like they will actually pay $4,073,876 in tax. This when paid gives us the ability to pay $9,505,710 in fully franked dividends. Seeing as we won't pay tax for the rest of the financial year if they wanted to pay fully franked dividends they would need to spread this out over the course of the year.

	Column 1	Column 2	Column 3	Column 4
0		Full Year	Interim	Total
1	Rate	0.002	0.0006	0.0026
2	SOI	3579208479	3579208479
3	Fully Franked Dividends	7158416.96	2147525.09	9305942.045
4
5	Available Fully Franked Dividends			9505710.67
6
7	Balance			199768.62

This is obviously based upon the franking account balance, and if they wish to pay FFD, not cash flow.

Happy to be challenged on these calculations.

Cheers

Pretz