How to Enter New Zealand Dividends

Overview

Dividends are recorded in Simple Fund 360 through the Transaction List. Selecting account 23900/INVESTCODE will prompt Simple Fund 360 to present you with the Dividend Details section.
This article will explain how to enter the components for New Zealand dividends.

For Information on entering Australian Dividends, click here

Instructions

1. From the Transaction List screen, select New Transaction. From the drop-down list, select Bank Statement.
   
   
2. Input the Date of the transaction and a Reference number (Simple Fund 360 will automatically produce a reference number, but it is editable). You can include a description of the transaction in the Description box.
   
   
3. Under the Account heading, select the bank account from the Select an account box. Click on the next Select an account box. Begin typing and select 
    account 23900/INVESTCODE.
   
   
4. Input the amount of the dividend received. Simple Fund 360 will post a corresponding entry to the bank account fields on the screen  (if you post a Debit amount to the other account, Simple Fund 360 will post a Credit to the bank for the same amount, and vice versa). Next to the Dividend received amount entered there will be a 'more details' button. Click the 'More Details' button to open the Dividend details and scroll down.
   

5. Review the dividend information in the Dividend Details section.

   Australian shareholders who receive dividends from New Zealand companies may be entitled to two types of tax offsets:

   1. Franking Credit Offset
      Shareholders can claim a tax offset equal to the amount of franking credits included in their assessable income. This reduces the Australian income tax payable on the dividend.

   2. Foreign Income Tax Offset
      If New Zealand withholding tax is applied to the dividend or any supplementary dividend, shareholders may also be entitled to a foreign income tax offset. This offset reduces the Australian income tax payable on those payments.

   Impact of Supplementary Dividends

   When a supplementary dividend is paid and the shareholder qualifies for a foreign income tax offset, the franking credits included in their assessable income must be reduced by the amount of the supplementary dividend. As a result, the franking credit tax offset is also reduced by the same amount.
   

   Please check your Dividend Statement and use the guide below. 

   Field in S360	Field on Dividend Statement	Additional Information
   Assessable Foreign Source Income	Franked Dividend Dividend Declared Supplementary Dividend	Enter Net Amount (after tax) NZ Dividends will be included at label D1 Gross foreign income in the SMSF Annual Return
   Foreign Income Tax Offset	Withholding Tax
   Australian Franking Credits from a New Zealand Company	Australian Franking Credit Australian Imputation Credit	Dividends paid by New Zealand resident companies do not normally carry Australian franking credits. However, a New Zealand company can choose to join the Australian imputation system and distribute Australian franking credits with its dividends. The company may be referred to as a New Zealand franking company.
   N/A	New Zealand Franking Credit New Zealand Imputation Credit	You cannot claim New Zealand imputation credits in Australia