Shareholder Information

Latest Dividend Information

Latest Dividend Information

Dividend - 2008 Final

The final dividend of 24.5 cents per share is credited for New Zealand and Australian tax purposes to the maximum permitted amount. As a result of the change in the New Zealand corporate tax rate from 33 percent to 30 percent on 1 July 2008, dividends can be imputed at either a 30 percent or 33 percent rate, depending on applicable rate of the tax payments. This dividend can only be imputed at the 33 percent rate to the extent of 10.5 cents of this dividend. The remaining 14.0 cents will be credited at the 30 percent tax rate. To the extent the 30 percent tax rate credits are attached, an additional 3 percent resident withholding tax must be deducted for New Zealand shareholders without exemption certificates.

Non-New Zealand shareholders still benefit from the New Zealand supplementary dividends attached to the imputation credits, as these have the effect of removing the cost of New Zealand non-resident withholding tax on the portion of dividends carrying imputation credits. A dividend summary is attached, illustrating the effect of the New Zealand tax credits on the dividend paid and the supplementary dividend paid to non New Zealand shareholders.

The final dividend is fully franked for Australian tax purposes. To maximise the value of available franking credits the company's policy is to accumulate them and attach these to dividends only when the franking percentage is at or near to 100 percent, rather than spreading them over every dividend. It is currently anticipated that the final dividend for the 2009 year will be the next dividend to be fully, or almost fully, franked under this policy.

The dividend reinvestment plan will be operative for this dividend payment. Documentation for participation is available from the share registry and must be received by the registry before the record date. The price used to determine entitlements under the dividend reinvestment plan is the weighted average share price of the company's shares sold on the New Zealand Exchange and designated by the NZX as "price-setting trades" in the five business days following the record date of 26 September 2008. The new shares will be issued on the dividend payment date of 16 October 2008.

The shares will be quoted on an ex dividend basis from 22 September 2008 on the ASX and 29 September 2008 on the NZX.

Summary Table ⁽¹⁾

Notes:
(1) This summary is of a general nature and the tax rates used and the calculations are intended for guidance only. As individual circumstances will vary, shareholders are advised to seek independent tax advice.
 
(2) These tax credits are not received in cash but are relevant in determining the gross dividend received for NZ tax purposes. The dividend only has imputation credits attached at 33 percent on 10.5 cents per share and 30 percent on the balance of 14.0 cents per share.
 
(3) The supplementary dividend is payable to non-New Zealand shareholders and has the effect of removing the cost of New Zealand non-resident withholding tax on the dividend.

(4) These amounts are not received in cash but are relevant in determining the gross dividend received for Australian tax purposes.

(5) For all NZ resident shareholders who do not hold an exemption certificate, resident witholding tax (RWT) is required to be deducted at 33 percent from that part of the gross dividend which has not been credited with imputation credits at 33 percent. For those shareholders, a deduction of 0.60 cents per share will be made on the date of payment. Resident shareholders who have a tax rate less than 33 percent will need to file a tax return to obtain a refund of the RWT.

(6) NZ non-resident withholding tax at the rate of 15% on the gross dividend for NZ tax purposes.
 
(7) This summary uses the 15% income tax rate applicable in Australia to complying superannuation funds, approved deposit funds and pooled superannuation trusts. Different tax rates will apply to other Australian shareholders, including individuals, depending on their circumstances.

The Australian tax is calculated as:


	gross dividend for NZ tax purposes			28.8235
	plus franking credits		10.5000
	less NZ supplementary dividend		(4.3235)	6.1765
	gross dividend for Australian tax purposes			35.0000
	net Australian tax payable (15%)			5.2500


(8) The Australian franking credit assessable amount and tax offset is calculated by reducing the franking credits by the NZ supplementary dividend. Any surplus franking credit offset is refundable to Australian resident shareholders on issue of their Australian tax assessment.