A resident company that has a corporate tax rate for imputation purposes of 30% pays a $8500 dividend with $4500 of franking credits allocated to it to each of its five shareholders.

Explain how its shareholders are taxed assuming their relevant details are as follows:

• Terrance is a resident who has salary income of $55,000
• Tanvi is a resident who has no other income
• S Co is a resident private company that pays tax at the rate of 25.5%
• Luxury Co is trustee of a complying superannuation fund that has no other income
• G Co is a company that is resident in the United States and has no other income.