Dividend Information   |   17 August 2016

2016 Final Dividend Summary

2016 Final Dividend Summary Table1

 

 

NZ residents

Australian residents

 

 

 

NZ cents per share

on top marginal tax rate of 33%

on top marginal tax rate of 49%

Australian residents on
15% tax rate

Other non- residents

dividend declared

20.0000

20.0000

20.0000

20.0000

NZ imputation credits2

7.7778

 

 

 

NZ supplementary dividend3

 

3.5294

3.5294

3.5294

Australian  franking credits4

 

0.0000

0.0000

 

Gross dividend for NZ tax purposes

27.7778

23.5294

23.5294

23.5294

NZ tax (33%)5

(9.1667)

 

 

 

NZ non-resident withholding tax (15%)6

 

(3.5294)

(3.5294)

(3.5294)

Net cash received after NZ tax

18.6111

20.0000

20.0000

20.0000

Australian tax (49% and 15%)7

 

(11.5294)

(3.5294)

 

Reduced by offset for NZ non-resident withholding tax

 

3.5294

3.5294

 

Less Australian franking credit offset

 

0.0000

0.0000

 

Net cash dividend to shareholders after tax

18.6111

12.0000

20.0000

20.0000

 The dividend will be paid on 12 October 2016 to holders registered as at 5pm Friday September 2016 (NZT).

Dividend Reinvestment Plan: Operative

 

 


Notes:

  1. 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.
  2. The dividend has imputation credits attached at a 28% tax rate.
  3. 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.
  4. There are no Australian franking credits attached to this dividend and the conduit foreign income component is nil.
  5. 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%. Accordingly, for those shareholders, a deduction of 1.3889 cents per share will be made on the date of payment from the dividend declared of
  6. 20.0 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.
  7. NZ non-resident withholding tax at the rate of 15% on the gross dividend for NZ tax purposes.
  8. 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. 

    The Australian tax is calculated as: 

     49% Rate

    15% Rate

    Gross dividend for NZ tax purposes

    23.5294

    23.5294

    plus franking credits

    0.0000

    0.0000

    Gross dividend for Australian tax purposes

    23.5294

    23.5294

    Australian tax

    11.5294

    3.5294

  9. 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.