How does tax work on dividends?
Learn how dividends may be treated as investment income and what the ATO says about declaring them.
Summary
Dividends are a type of investment income. The ATO says investment income, including dividends, may need to be declared in a tax return.
What this means
Dividends can include franked and unfranked amounts, and franking credits may also be relevant. Investors should check dividend statements and pre-filled tax return information carefully.
Dividend tax treatment depends on the type of dividend and the records provided by the company or share registry.
Typical actions
- Keep dividend statements.
- Check pre-filled dividend information.
- Declare dividends and franking credits where required.
- Review ATO guidance for special dividend types.
Official ATO sources
Last checked: 20 June 2026
Dividends
Explains dividend income and reporting.
Investment income
Explains investment income categories.
Shares and similar investments
Explains tax issues for shares and similar investments.
Related questions
- What are franking credits?
- What records should investors keep?
- What happens when I sell shares?
- What income do I need to declare?
Important notice: Tax Clarity is an independent information tool. This page provides general information based on official sources. It does not provide tax, legal, financial, or accounting advice. Tax rules can change, and how they apply depends on your circumstances. For advice about your situation, speak with a registered tax agent or qualified professional.
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