I note that FBU has used up its NZ tax losses and most of its...

I note that FBU has used up its NZ tax losses and most of its prepaid NZ tax asset (which stood at NZ$61m at June 2020) and the Investor Presentation states that they expect to impute (presumably with NZ imputation credits) the FY22 final dividend, so all things being equal the gross dividend yield for NZ shareholders will improve next year. For Australian shareholders, the NZ supplementary dividend rules also provide an advantage where dividends are paid with NZ imputation credits attached.

As the company has significant Australian businesses, they are also able to attach Australian franking credits to future dividends paid. However, note 25 to the financial statements suggests they still have Australian tax losses with a carrying value (i.e. tax effect of the gross tax loss amount) of NZ$92m at June 21, so still some way away from paying tax again in Australia. According to Note 18 FBU does have a positive balance in its Australian franking account of NZ$35m, so they may have the ability to attach some franking credits to FY22 dividends from this existing balance.

In the past, FBU alternated between attaching Australian franking credits and attaching NZ imputation credits to dividends paid, so maybe the comment that they expect to impute the final FY22 dividend infers they will attach Australian franking credits to the interim FY22 dividend? FBU previously explained that the alternating treatment was designed to maximise the benefit of the supplementary dividend regime for Australian shareholders.