Tag Archives | dividend imputation

personal concessional contributions

No logic in reinstating the complex 10% rule

In the final Leaders’ Debate, the Prime Minister asked why Labor wishes to deny a tax deduction for additional personal concessional contributions, reinstating the old 10% rule. What’s the logic of this complex rule?

imputation changes

How imputation changes will hit retirees

Australian retirees’ access to dividend imputation refunds justifies a bias towards Australian equities in retirement, and the loss of refunds will have significant portfolio and income implications.

tax-free

Tax-free super drives the politics of envy

Labor has been forced to exempt ‘pensioners’ from its franking credit refund policy, but the target remains the zero tax paid by large SMSFs in pension phase. That will sustain the class war.

company tax

Let’s get the numbers right on imputation

Every day, an expert writes somewhere about the adverse impact of a reduction in franking credits due to a lower company tax rate. This tax rate has no impact on the after-tax returns received by Australian shareholders.

franking credits franking refunds

Do franking credits matter?

Imputation is seen as a costly tax break for domestic shareholders with minimal associated benefits for the overall economy, but any changes to the system should consider some broader consequences.

Dividend imputation and superannuation are worth fighting for

The super industry should have a jaundiced view of reductions in the existing company tax rate but, more than that, remain vigilant in protecting ‘dividend imputation’. And superannuation is about de-risking the future, so people should be encouraged to salary sacrifice in later life.

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