Telstra 2009 Annual Report Download - page 120

Telstra Corporation Limited and controlled entities
105
Notes to the Financial Statements (continued)
(a) One franking account and one exempting account is maintained
by the Telstra Entity for the tax consolidated group.
The franking account balance represents the amount of tax paid by
the entity that is available for distribution to shareholders. In relation
to our exempting account, there are statutory restrictions placed on
the distribution of credits from this account. As a result of these
restrictions, it is unlikely that we will be able to distribute our
exempting credits.
Additional franking credits will arise when the Telstra Entity pays tax
instalments during fiscal 2010, relating to the fiscal 2009 and 2010
income tax years. Franking credits will be used when the Telstra
Entity pays its 2009 final ordinary dividend during fiscal 2010.
(b) Franking credits/debits that will arise from the payment/receipt of
income tax are expressed at the 30% tax rate on a tax paid basis. These
balances represent the current tax payable and current tax receivable
as at 30 June 2009 for the tax consolidated group.
(c) The franking debits that will arise when we pay our final ordinary
dividend are expressed as the amount of franking credits that will be
attached to a fully franked distribution. Refer to note 30 for further
details in relation to our dividends to be paid subsequent to year end.
We believe our current balance of franking credits combined with the
franking credits that will arise on tax instalments expected to be paid
during fiscal 2010, will be sufficient to cover the franking debits arising
from our final dividend.
4. Dividends (continued)
Telstra Entity
Year ended 30 June
2009 2008
$m $m
The combined amount of exempting and franking credits available to us for the
next fiscal year are:
Franking account balance (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 178 70
Exempting account (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 24
Franking credits that will arise from the payment of income tax payable
as at 30 June (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 220 222
Franking debits that will arise from the receipt of current tax receivable . . . . . . . . .
as at 30 June (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (100) -
Exempting credits that we may be prevented from distributing in the next
fiscal year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24) (24)
298 292
Franking debits that will arise on the payment of dividends resolved
after 30 June (c)
Final dividend . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 745 744