Distribution statement

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Distribution statement
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Distribution statement is 'a statement identifying the place or places of distribution, distributor or distributors, and date or dates of distribution of a resource in a published form' according to RDA[1].

The information contained in the Distribution statement

The distribution statement must be in an approved form and must state [2]:

  • the name of the entity making the distribution
  • the date on which distribution takes place
  • the amount of the distribution
  • the amount of the franking credit attached to the distribution
  • the franking percentage for the distribution
  • the amount of any withholding tax deducted from amounts paid by the entity
  • the name of the shareholder
  • where distribution is unfranked a statement to that effect
  • where any or all of the amount of the distribution which is not considered to give rise to revenue is the part declared to give rise to foreign revenue, and
  • where the distribution is franked the franked amount and the unfranked amount of the distribution

Where a facsimile or a reproduction has a distribution statement or statements referring to the original manifestation as well as to the facsimile or reproduction, the distribution statement or statements referring to the facsimile or reproduction must be recorded. Record any distribution statements referring to the original as a statement of distribution of the related manifestation [3].

Amending a distribution statement

A corporate tax entity may approach the Commissioner to allow him to change the franking credit granted for distribution by changing the distribution statement. The application must be made in writing and must contain all information relevant to the matters that the Commissioner is required to consider when making his decision. The ATO information sheet states that the Commissioner is expected to exercise his discretion (to allow for a change in the distribution statement) only if the amount of the franking credit stated in the distribution statement was not intended. The entity or member of the entity may object against to the Commissioner's decision[4].

Frankable distribution

An entity subject to corporation tax that carries out franked distribution must issue a distribution statement to its members. An entity that distributes on a frankable distribution basis must provide the recipient with a distribution statement containing certain information about the entity and the distribution. The deadline for reporting on the distribution depends on whether the entity is a private company or not for the financial year in which the distribution is made. A private company entity for a financial year in the accounts before the end of the four months following the end of the financial year in which the division was made, or any other date authorised by the Commissioner, must make the division[5].


  1. Joudrey. D, Taylor. A, Miller. D, (2015)
  2. Australia Staff, (2012)
  3. Joint Steering Committee, (2013)
  4. Australia Staff, (2012)
  5. Taxpayers Australia Inc, (2014)


Author: Karolina Stankiewicz