2017 Final Dividend Summary Table 1 |
|
NZ cents per share |
NZ Residents on Top Marginal Tax rate of 33% |
Australian Residents on Top Marginal Tax rate of 47% |
Australian Residents on 15% Tax Rate |
Other Non- Residents 8 |
|
Dividend declared |
19.0000 |
19.0000 |
19.0000 |
19.0000 |
|
NZ imputation credits 2 |
7.3889 |
|
|
|
|
NZ supplementary dividend 3 |
|
3.3529 |
3.3529 |
3.3529 |
|
Australian franking credits 4 |
|
0.0000 |
0.0000 |
|
|
Gross dividend for NZ tax purposes |
26.3889 |
22.3529 |
22.3529 |
22.3529 |
|
NZ tax(33%)5 |
(8.7083) |
|
|
|
|
NZ non-resident withholding tax (15%)6 |
|
(3.3529) |
(3.3529) |
(3.3529) |
|
Net cash received after NZ tax |
17.6806 |
19.0000 |
19.0000 |
19.0000 |
|
Australian tax (49% and 15%)7 |
|
(10.5059) |
(3.3529) |
|
|
Reduced by offset for NZ non-resident withholding tax |
|
3.3529 |
3.3529 |
|
|
Less Australian franking credit offset |
|
0.0000 |
0.0000 |
|
|
Net cash dividend to shareholders after tax |
17.6806 |
11.8470 |
19.0000 |
19.0000 |
Notes:
-
This summary is of a general nature and the tax rates used and the calculations are intended for guidance only. As individual circumstances will vary, shareholders
are advised to seek independent advice. -
The dividend has imputation credits attached at a 28% tax rate.
-
A supplementary dividend is only payable to non-New Zealand shareholders and has the effect of removing the cost of New Zealand non-resident withholding tax
(NRWT). Non-resident shareholders with a 10% or greater direct shareholding are not eligible to receive supplementary dividends but are exempt from NRWT. -
There are no Australian franking credits attached to this dividend.
-
For all NZ resident shareholders who do not hold an exemption certificate, resident withholding tax (RWT) is required to be deducted at 5% from the gross
dividend which has been credited with imputation credits at 28 percent. Accordingly, for those shareholders, a deduction of 1.3194 cents per share will be made
on the date of payment from the dividend declared of 19.0 cents per share and forwarded to Inland Revenue. Resident shareholders who have a tax rate less than
33% will need to file a tax return to obtain a credit for the RWT deduction in excess of their marginal tax rate. -
NZ non-resident withholding tax at the rate of 15% on the gross dividend for NZ tax purposes.
-
This summary uses two examples of the effect of tax in Australia. The first uses the top marginal tax rate of 47%, including the Medicare levy (the Temporary
Budget Repair Levy ceased on 30 June 2017). The second example uses the 15% income tax rate applicable in Australia to complying superannuation funds,
approved deposit funds and pooled superannuation trusts. Different tax rates will apply to other Australian shareholders, including individuals, depending on their
circumstances.The Australian tax is calculated as:
47% Rate
15% Rate
Gross dividend for NZ tax purposes
22.3529
22.3529
plus franking credits
0.0000
0.0000
Gross dividend for Australian tax purposes
22.3529
22.3529
Australian tax
10.5059
3.3529
- This illustration does not purport to show the taxation consequences of the dividend for non-residents of New Zealand or Australia. Shareholders resident in other countries are encouraged to consult their own taxation advisor.