As of 1 July 2002, the new imputation system requires a company’s franking credits to be expressed on a tax-paid basis. The franking account surplus existing at 30 June 2002 has been reinstated to a tax paid amount by multiplying the Class C  franking surplus by 30/70.  HARVEY NORMAN HOLDINGS LIMITED AND ITS CONTROLLED ENTITIES – ANNUAL REPORT 2003 51  28. Retained Profits and Dividends (continued)  Notes to the Financial Statements (continued)  CONSOLIDATED PARENT 2003  2002  2003  2002  $000  $000  $000  $000  (a) Dividends Proposed and Recognised as a  Liability Franked dividends - Harvey Norman (2002: 2.5 cents)  -  26,397  -  26,397  - Rebel Minority Interest (2002: 1 cent)  -  341  -  -  -  26,738  -  26,397  (b)  Dividends Paid During the Year  (i)  Current Year Interim Franked dividends 2.5 cents per share (2002:  2.0 cents per share)  26,397  21,118  26,397  21,118  (ii)  Previous Year Final Franked dividends 2.5 cents per share (2002:  Relates to 2001 Final Dividend of 2.0 cents  per share)  26,397  20,363  26,397  20,363  52,794  41,481  52,794  41,481  The current year interim dividend was paid on 5 May 2003.  The previous year final dividend was paid on 2 December 2002.  The dividend expense balance recognised as at 30 June 2002 was comprised of the current year interim dividend for 2002  of $21.12 million and the final dividend proposed for 2002 of $26.40 million. This totalled $47.52 million for the year.  (c)  Dividends Proposed and not Recognised as  a Liability Franked dividends 2.5 cents per share (2002:  nil)  26,397  -  26,397  -  The consolidated entity has changed its accounting policy in relation to providing for dividends. Refer to Note 1 (y) for the  description of changed policies.  (d) Franking Credit Balance  The amount of franking credits available for the  subsequent financial year are:  franking account balance as at the end of the  financial year at 30% (2002: 30%)  255,189  211,491  195,365  164,914  franking credits that will arise from the payment of income tax payable as at the end of the financial  year  19,336  28,743  6,343  7,545  274,525  240,234  201,708  172,459 