next dividend, page-242

Dividends are Income and therefore should be included in any calculation to determine a taxpayers Taxable Income.

Example 1:

Taxpayer has (No other Income.)

FMG Dividend received for the YE 30/6/23 $25,000
Franking Credit attributable to the FMG Dividend $7,500

2023 Taxpayer Taxable Income $32,500 (Grossed Up)

(Tax Calculation on $32,500
0-$18,200 Nil
$18,201-$32,500 $2,716.81
Medicare Levy $650.00)

Tax Payable $3,366.81

Add back FMG Franking Credit $7,500

Refund Due $4,133.19


Example 2.

2023 Taxpayer Taxable Income $18,200 (Including Grossed Up dividends)

Tax Payable Nil

Add back FMG Franking Credit whatever that may be $????

Refund Due whatever the FMG Franking Credit was $????

(Effectively meaning a refund of the amount of Company Tax paid by FMG on the distributed dividend)