WBC - Westpac

[Bjauck]

Okay, this is something I've never quite managed to get straight in my own mind:

WBC shares listed in Australia pay dividends with full Australian franking credits.

WBC shares listed in New Zealand pay dividends without full New Zealand imputation credits.

Which means, in theory, that WBC shares listed in Australia are more valuable to Australian shareholders than WBC shares listed in New Zealand are to New Zealand shareholders...

All shareholders are treated the same whether they have the Australian or NZ listed shares. The NZ and Australian imputations credits are attached to all dividends no matter where the shareholders reside and no matter where their shares are listed.

Only NZ residents can utilise their share of the NZ Imputation credit. As NZ business represents a smaller percent of the Group turnover, then we can only expect an imputation credit per share commensurate with that.

That is a drawback of NZ business being run by overseas companies. Less of the total imputation credit for NZ tax tax paid ends up being utilised by NZ resident shareholders. Overseas shareholders get credits, but cannot utilise them.