Dividends paid by Bendigo and Adelaide Bank carry a franked dividend. Under this system shareholders receive a credit for their proportion of the tax paid by the bank. You can use this system to offset your own tax liability.
The amount of franking credit received, in addition to the amount of dividend, should be included in your assessable income. However, a rebate is allowed in the tax payable to the extent of the franking credit. Details of the payment and franking credits will be forwarded to you with each dividend payment.
|Dividend Reinvestment Plan||
Instead of receiving your dividend in cash, the Dividend Reinvestment Plan allows you to use all or part of the amount available to purchase additional shares – that rank equally with other permanent shares.
You will be advised of the shares allotted and the franked amount involved.
|Bonus Share Scheme||
Under this scheme you can elect to receive bonus shares in place of cash or shares in the form of a dividend. This provides a tax-free distribution in the year of receipt and does not carry any franking credits.
Capital Gains Tax may apply on disposal unless the original shares were acquired before 20 September 1985. Shares issued under this plan rank equally with all other fully paid ordinary shares.