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2
NOTE 2
PAYMENT OF DIVIDENDS TO SHAREHOLDERS
Accounting policy
A liability is recognised for the amount of any dividend declared on or before the end of the financial year but not
distributed at reporting date. As the final dividend was declared by Directors after year end, the final dividend has
not been recognised as a liability.
2016
2015
$’000
$’000
a) Dividends paid during the year
Final dividend for the year ended 31 July 2015 of 30 cents
(2014: 29 cents) per fully paid ordinary share paid on 7 December 2015
(2014: 8 December 2014) fully franked based on tax paid at 30%
71,819
69,425
Interim dividend for the year ended 31 July 2016 of 21 cents
(2015: 20 cents) per fully paid ordinary share paid on 12 May 2016
(2015: 14 May 2015) fully franked based on tax paid at 30%
50,273
47,879
Total dividends paid
122,092
117,304
b) Dividends not recognised at year end
In addition to the above dividends, since year end the
Directors have declared the payment of:
A final dividend of 31 cents per fully paid ordinary share,
(2015: 30 cents) fully franked based on tax paid at 30%
74,213
71,819
This dividend is due to be paid on 12 December 2016
(2015: 7 December 2015) out of retained profits as at 31 July 2016,
and has not been recognised as a liability at year end.
c) Franking of dividends
The final dividend for 31 July 2016 will be franked out of existing
franking credits or out of franking credits arising from the payment of
income tax in the year ending 31 July 2016.
Franking credits available for future dividend payments
Franking credits available for subsequent financial years based on an
Australian company tax rate of 30% (2015: 30%).
540,553
529,996
The above amounts represent the balance of the franking account as
at the end of the financial year, adjusted for franking credits that will
arise from the payment of provision for income tax, franking debits that
will arise from the payment of dividends recognised as a liability at the
reporting date, and franking credits that will arise from the receipt of
dividends recognised as receivables at the reporting date.
Subsequent to year end, the franking account will be reduced by the final
dividend to be paid on 12 December 2016 (2015: 7 December 2015).
(31,805)
(30,779)
Balance of franking credits available after payment of the
final dividend
508,748
499,217