Australia
The Federation of Euro-Asian Stock Exchanges
Economic activity in Australia's major trading partners is forecast to contract by 3% in 2020 (in year-average terms) and then grow by 6 % in 2021 and 4% in 2022. These forecasts are broadly similar to those presented in the August Statement on Monetary Policy; however, a recent resurgence in COVID-19 infections in a number of key economies has increased near-term risks to this outlook. Underlying inflationary pressures are likely to remain subdued globally for some time given considerable spare capacity.
In Australia, the recovery in activity has been underway for several months after the economy experienced the deepest peacetime contraction since the Great Depression in the first half of the year. The domestic recovery is set to be supported by the further easing in activity restrictions and substantial monetary and fiscal policy stimulus. The baseline scenario for GDP growth has been upgraded a little relative to the August Statement. This reflects stronger-than-expected household consumption and additional policy support (including that announced in the Australian Government Budget), though a downward revision to resource exports has partly offset the firmer outlook for domestic demand. Even after the GDP forecast upgrade, the severity of the downturn in the first half of the year means that GDP is not expected to return to its pre-pandemic level until the end of 2021.
Economic Development and Outlook
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Taxation
Dividents Tax: 30% (or 27.5% where the paying company is a small company)
1. As for resident companies:
A resident company, or a New Zealand franking company that has elected to join the Australian imputation system, may be paid or credited with a franked dividend. Dividends can be fully franked or partly franked.
2. As for non-resident companies:
If you are a non-resident of Australia, the franked amount of dividends you are paid or credited are not subject to Australian income and withholding taxes. The unfranked amount will be subject to withholding tax. However, you are not entitled to any franking tax offset for franked dividends. You cannot use any franking credit attached to franked dividends to reduce the amount of tax payable on other Australian income and you cannot get a refund of the franking credit. You should not include the amount of any franked dividend or any franking credit on your Australian tax return.
Income tax: