Company Dividend Statement in Australia – What It Includes & Why It Matters

A Company Dividend Statement is a legal document issued to shareholders when a company pays a dividend. It shows the amount paid, franking credits (if any), and tax implications.

In Australia, issuing this statement is a legal requirement under the Corporations Act 2001 and ATO rules. The document must be provided at the time the dividend is paid.

What a Dividend Statement Must Include

According to ATO guidelines, each dividend statement must show:

• Name of the company
  
• Date paid
  
• Name of shareholder
  
• Amount of the dividend paid
  
• Amount of any franking credit attached
  
• Franked or unfranked status
  
• Grossed-up amount (dividend + franking credit)
  
• Company’s ABN or ACN
  

Why It Matters

• It allows shareholders to claim franking credits on their tax return
  
• It helps prevent double taxation of corporate profits
  
• It ensures compliance with ASIC and ATO recordkeeping rules
  

Franking Credits & Dividend Statements

If your company distributes franked dividends, the dividend statement must show the amount of tax already paid on the distributed profit (the franking credit). Shareholders use this to offset their income tax.

Common Mistakes

• Forgetting to issue the statement
  
• Omitting the franking credit amount
  
• Not recording the shareholder’s full name or ABN/ACN
  
• Sending the statement late
  

Ozobooks ensures dividend statements are accurate, compliant, and delivered on time.

How Ozobooks Helps

• Prepares compliant company dividend statements
  
• Links each payout with correct franking status
  
• Ensures correct records are lodged with ASIC or ATO when required
  
• Automates annual dividend summaries for shareholders
  

FAQ:

Q1: Is a dividend statement required for all dividend payments?
Yes. Whether franked or unfranked, a statement is required for each dividend paid.

Q2: Can I issue one statement for multiple dividends?
No. A separate statement must be issued for each dividend event.

Q3: Can my accountant prepare dividend statements?
Yes, and Ozobooks offers this service to ensure compliance.

Q4: What if I forgot to issue past dividend statements?
You may need to back-issue them. Ozobooks can help you catch up and notify shareholders.