FY2015   |   25 September 2015

2015 Final Dividend Summary

NZ cents per share
NZ    RESIDENTS ON TOP MARGINAL TAX RATE OF 33%
AUSTRALIAN RESIDENTS ON TOP MARGINAL TAX RATE OF 49%
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)    (10.9529)  (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 11.4000 19.0000 19.0000

 

The dividend will be paid on 14 October 2015 to holders
registered as at 5.00 pm Friday 25 September 2015 (NZT)

Dividend Reinvestment Plan price:  NZ$6.9342 / A$6.2885

 

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 tax advice.

The dividend has imputation credits attached at a 28 percent tax rate.

The supplementary dividend is payable to non-New Zealand shareholders and has the effect of removing or reducing 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 and the conduit foreign income component is nil.

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 49%, including the Medicare levy and the Temporary Budget Repair Levy. 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.

he  Australian tax is calculated as:

49% 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

10.9529

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 adviser.