Re: Australian Dividend Franking

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Posted by Paul King on April 02, 2006 at 21:51:39:

In Reply to: Re: Australian Dividend Franking posted by Mark on March 31, 2006 at 14:56:24:

Spare a thought too for non Australians who own Australian shares!
We get dividends compulsorily fully or partially franked in Australia, but recieve no credit for franking under our own tax regimes - so the downloaded gross dividend figure is NOT the pre tax amount for non Australians!

Some Australian companies also refuse to issue dividends to non residents in Australian currency - even nastier

Arrgh!

A few smart auto prompting feilds for downloaded or manually entered transactions would be useful - so user can nominate explicilty the breakdown/origin of amounts entred vs those appearing in bank acount - to radically simplify the accounting process every year

: : G'Day Mark

: : Several times over the years, Australian users of FM have raised the question of how to account for dividend franking using FM.
: : I came across this simple (If any Aust Tax can be described as simple!) explanation of the system and am forwarding it to you in the hope that one day you may consider enhancing FM to account for Aust Dividend Franking which is a deferred benefit to investors.

: : Regards and thanks for a great program
: : John

:
: Hi John,

: Excellent post, thank you. I'm trying to think what changes would best help for these dividends? Fund Manager doesn't get into your tax burden, besides calculating your capital gains/losses. All performance reporting is in terms of pre-tax values.

: In the example given, it seems the real dividend should be recorded as $964.29, and then some money was taken out of this (to pay $289.29 in taxes). The pre-tax performance of the investment though should really reflect the full $964.29 dividend. I can see wanting to record your franking credits, but it seems they should not affect the pre-tax performance numbers.

: Did you have some ideas for features that would help out here?

: Thanks,
: Mark
: --
: Fund Manager - Portfolio Management Software

Replies:

• Re: Australian Dividend Franking Mark 11:36:32 04/03/06 (8)
  • Re: Australian Dividend Franking John Mott 02:42:19 04/13/06 (7)
    • Re: Australian Dividend Franking Bruce Lancashire 01:45:38 09/28/07 (1)
      • Re: Australian Dividend Franking Mark 12:22:44 09/28/07 (0)
    • Re: Australian Dividend Franking Mark 10:51:06 04/13/06 (4)
      • Re: Australian Dividend Franking Don Atkinson 06:52:27 04/15/06 (3)
        • Re: Australian Dividend Franking Mark 11:08:45 04/15/06 (2)
          • Re: Australian Dividend Franking Gary Wilson 01:52:43 05/10/06 (1)
            • Re: Australian Dividend Franking Mark 10:12:35 05/10/06 (0)